PPR main residence election

PPR main residence election

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My client owns 3 properties:
1. the family home, lived in for years, current PPR.
2. A holiday cottage in UK currently let out for holiday lets, but they probably spend 4-5 weeks per year there themselves. Owned for 20+ years.
3. A new property in Spain, again let out for holidays, with them spending a few weeks there each year.

Client has asked if they should make a main residence election to confirm main home as PPR so they can vary it in the future as they may spend long periods of time in either property 2 or 3 when they retire and let out property 1 while they do.

My thoughts are that as properties 2 and 3 are currently let out, they wouldn't qualify as main residence at the moment in any case, so they are not currently in a position to make an election. Although they own 3 properties, only one can be described as a residence. Or is the fact that the lets are only short term and they do spend a few weeks a year in each enough to make them residences?

If they let out property 1 and moved into either 2 or 3 in the future, then their new home would be their residence by default because again, only one property is actually available as a residence?
EL

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By AnonymousUser
16th May 2008 16:26

May not have reached the need to make an election
The two years is two years from the time when a notice can be given. Normally this is from when the property is bought. However, if neither of the other two can be a residence, no notice can be given.

If the Spanish one starts to become a residence the time limit starts from then.

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By User deleted
16th May 2008 16:01

Spain is new
Thanks Pete. The Spanish property was bought last year, so if it did count as a residence, then there is a new window, but I am with you. I think spending 2 weeks there twice a year on holiday and letting it out for the rest of the time means it is not a residence, so no election possible. BUT, as the lets are all only 1 - 2 weeks, it is not the same as if they had let it out on a 6 month contract. It could stop at any time, unlike a longer term letting. If anyone knows HMRC's view on this, I would really appreciate your comments.

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By User deleted
16th May 2008 14:34

Nomination
A nomination is only possible in the two year window from when they had a combination of properties that could he their residence. Now the Spanish property may have opened that window but you do have to actually live there as your residence to make the nomination count. Now they do visit the Spanish property between lets but have to leave as it is then let out so I do not think it can be regarded as a residence. http://www.hmrc.gov.uk/manuals/cg4manual/CG64486.htm
starts you off on the trial. Regards Peter

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