avoiding 40% capital gains tax

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Friday 4 October 2013 1.06pm
Hi.. can anyone out there give me some advice.
I own 2 flats..one is rented out and i live in the other one. I want to sell the rented one. Is it true that i can avoid paying 40% capital gains tax if i move into the flat first ? And if so, how long do i have to live there before the sale can complete ?..and what proof of residence do i need?
RD
Monday 7 October 2013 10.06am
Sounds like you should seek some professional advice!
Wednesday 9 October 2013 9.00pm
And capital gains tax is 28pct at most, not 40
Thursday 10 October 2013 9.08am
HMRC website will have the info you need

...if you press it, they will come.
Wednesday 30 October 2013 1.33pm
You are thinking of Principal Private Residence relief (PPR). If you own more than one property, in certain situations it is possible to elect which property is your principal residence for CGT purposes. You should get expert advice as this isn't a simple area.
Monday 20 January 2014 2.42pm
Not sure you should be on a public forum asking about techniques for tax avoidance :)
Thursday 20 February 2014 12.48am
HMRC are not stupid.
Monday 24 February 2014 5.18pm
It's a legitimate question, and in any event it's HMRC who decide on each case.

When I last looked into it (as a result of being posted abroad) they operated a system of "taper relief" based on how long you were owner-occupier before and/or after the tenancy. So you couldn't move back in one day and escape CGT the next: it'd take some years of living there again before the liability disappeared.

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