CGT implications on Principal Private Residence when moving to second property to refurbish PPRMake Text Bigger
My partner and I are undertaking an extensive refurbishment on our primary home which we have lived in since buying it a couple of years ago. In the meantime we have just bought a small flat which we intend to live in while the refurbishment takes place, and rent it out after moving back to our house.
As far as I understand there is no CGT payable if you have lived in your home since buying it. We have no intention of selling the house but I wanted to understand what the implications are for the eventual sale of either property. My concerns are as follows:
- if we move out of the house while the work takes place (about a year), will this vacant period open us up to paying CGT if we eventually sell? If so, will the tax payable be calculated according to the time spent outside the property as a percentage of the total ownership period?
- if we live in the flat for 6-12 months with no intention of making it our permanent residence, can we still claim PPR relief if we come to sell it or does this entirely negate the status we’re trying to achieve with the house?
Just trying to determine what the most prudent and efficient way forward is!
Many thanks in advance,
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