CGT on rented properties

CGT on rented properties

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A client owns 2 rented apartments. He also owns a house which has been a main residence or a number of years. He proposes to let the house in May 2006 and move into one of the apartments and in October 2006 move into the other apartment.
Can he claim main residence relief for these short occupancies and could he claim residential lettings relief if he sells the two apartments in 2007/8. ?
Thanks for any help.
HM
Howard Myers

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By ACDWebb
15th Mar 2006 13:40

Possibly
but it looks very contrived, as it did when you posted this the day before.

The inference is that he is only moving in to get the relief and having achieved that and sold the apartments will move back to the house.

You are presumably relying on the apartments taking main residence status for CGT as a matter of fact not election, which may, or may not be out of time.

As he will only have the apartment he is living in available as main residence (assuming the house is let) you may be able to persuade HMRC on facts if an enquiry is started, but I should have thought you might expect strong arguments being raised before you get through as the moves (as set out in the bald facts of the question) look to be ONLY to get the relief.

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