Client purchased and lived in home 'A' for a year while working self-employed (he's not a builder).
Due to lack of work client then did some property improvements on home A to 'fill a year when I had little work on but had some savings and time to invest'.
Time goes on.
Client manages to get a loan to purchase property 'B'
Spent lots of time doing it up (as it was a wreck) before finally moving into it.
Lived in house A all the time until B was complete and habitable - then moved into house B and put house A on the market.
House A was purchased in March 2006 for £200,000.
House B was purchased in October 2008.
Client moved into House B early 2011.
House A marketed for sale from time house B was occupied. Never been rented out, still empty, on market at a reduced price of £300,000.
If there is a gain on house A (I don't know as I don't have all the figures), do I have a problem with PPR relief and CGT on house A or do we just have to write to HMRC explaining the situation and the timeline, as it's now over two years since the purchase of house B?
Or am I worrying un-necessarily?
Any comments gratefully received.
- Fee protection 762 14
- Anyone know about Cloud-Based Practice Management Software? 124 3
- Increasing the personal allowance: A top priority? 915 38
- If I repay my Directors loan, will I haveto pay tax on the profit ? 3,042 31
- Sage Bank Reconciliation 205 3
- Overdrawn DLA 151 8
- CIS monthly declaration 148 9
- Telephone call from "Xero" 302 4
- Self assesment losses 174 5
- Form 2.8b notice of intention to appoint administrator 107 3
- Companies House incorporation service 452 14
- Auto-enrolment - Fees 104 1
- Electronic v printed payslips 108 1
- Where to advertise for staff 191 5
- Personal investment trading company 66 1
- CIS schemes 264 1
- Advertising with Hibu nee Yell (Yellow Pages) 136 2
- Excel formula 527 11
- Ltd company or sole trader 534 13
- Self assessment tax arrears 466 4
- Xtuple 558
- Qtac payroll for bureau 379
- Confused - Professional Association a Mutual trader, or not? 329
- Industrial & Provident Societies 319
- Domain name sale and limited company 216
- Director legal fees in loose connection to the company 199
- Italian friend wants to set up a UK company to reduce taxes 198
- Investment 198
- Tax on damages received 164
- Multiple bodies and practicing certificates 143