Intended private residence

Intended private residence

Didn't find your answer?

Our client, financed by their wealthy parents, bought a substantial home without selling their main residence. The new property required a lot of renovation work, and was not lived in for the 12 months it was owned, but the intention was always to move in once the renovation was complete, and then sell their original residence.

Another property came on the market on the edge of the parents' grounds, and this has been purchased as our client likes the idea of living near their parents, especially having young children.

The intended residence was therefore sold, and at a substantial profit, mainly due to the increase in property prices. Our client never moved into this house, but went straight from original home to home near parents.

Assuming our client is in time to make the main residence election, is there any chance of claiming principal private residence relief based on the genuine intention to live there?
Anon

Replies (2)

Please login or register to join the discussion.

avatar
By stephenkendrew
19th Nov 2007 18:56

No
I think you will have a problem.

See CG64429 -

"In all other circumstances a dwelling house must be occupied by the individual as a residence before relief can be available. An intention to occupy is not sufficient, see CG64465- CG64466."

Thanks (0)
avatar
By petegjones
20th Nov 2007 11:45

I agree
To claim the exemption for the last 36 months of ownership (which would be the only relief available), the owner must have at some point actually occupied the property as their PPR. Therefore, no exemption is allowed in this case.

Thanks (0)