CGT & PPR

Property owned for 6 years and used as holiday let. Client ceases letting and uses as PPR. If sold in years time, would last 3 years beexempt from Cgt?

Potentially if he really does move in and use it as his PPR, change addresses with HMRC etc, register to vote, and so on.

Since the MP's flipping came to light HMRC seem to have been reviewing claims more closely so a half hearted attempt just to try to get PPR and the letting allowance (which will follow if PPR is established) is likely to be attacked.

then it should be a matter of fact, BUT it may be better to put it beyond doubt by making the election if he still holds another property used / previously used as PPR.

HMRC will most likely do no more than acknowledge an election made and only review this when it becomes relevant on a disposal and claim to relief.

If the client owns a PPR prior to the move but genuinely moves in, lock, stock and barrel for a period of say 12 months then a claim to PPR may be made. However if the client returns to his former home then it is most likely the PPR claim will be denied. Add to this that the client may put the house on the market not long after he moves in then that, it detected in another nial in the PPR coffin. Regards Peter

If this is a qualifying FHL then on disposal and ER may be available. Living there for a year would cause ER to fail wouldn't it. ? Regards Peter