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Does anyone know if you can nominate a second house as your main residence after the sale has taken place ?

For example i nominate ............... as my main residence for the dates 6/4/15 - 6/8/15? or is this to late?

Reason being client has just told me he bought and sold a second home (cough) in the last financial year which he lived in for a couple of weeks!

I realise this wouldnt protect him from HMRC completely but am just thinking through all options

Hes a builder.

Thanks in advance any input appreciated

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By Duhamel
20th Aug 2015 09:51

2 years
He has 2 years from the date he acquired a new residence to make a nomination. Whether a 2 week stay makes it a residence is another question.

Edit: The builder occupation adds another dimension as well.

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By jonibarnes
20th Aug 2015 09:55

it certainly does! thanks for your reply

 

I haven't pondered the implications of VAT yet! he currently isn't registered but i have no doubt the sale proceeds would take him over the threshold!

 

im wondering if a argument that it was a temporary increase over would be successful

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Hallerud at Easter
By DJKL
20th Aug 2015 09:56

A hint of trading

There is certainly a hint of trading around what you describe, accordingly before even thinking about PPR eligibility I would address the badges of trade.

Only if you can satisfy yourself (and eventually HMRC) that is was not a trading transaction, if you can so satisfy them, ought you to consider whether it might be considered his PPR at any time.

Whilst quality of occupation is an important test- the normal electoral roll, correspondence tests apply- I suspect only two weeks (in effect less than my summer holiday in our second house) is going to be pretty hard (sorry impossible) to make the argument that it was his PPR on the information given. Now if you provide more information to support, say he moved in with his family to the house then say his father died after two weeks so he moved back to the old house to be nearer his mother, there might be an argument, but in the absence of such a back story, what is the reason occupancy was only two weeks?

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Hallerud at Easter
By DJKL
20th Aug 2015 10:04

By any chance did he do a fair bit of work on the property during the tax year he owned it?

I think if you make a full list of all the facts about it, look at how funded (short/long term finance), what he did to the property whilst he owned it etc you can probably deduce the correct tax treatment.

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By GrayMan
20th Aug 2015 11:35

Principal private residence

If he was married he could argue that, after a reason (to be specified) his wife said she was going to divorce him and threw him out, but they were reconciled after a less than a month. We all know how volatile things can be in the heat of the moment.  

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By Duhamel
20th Aug 2015 11:43

I think PPR

GrayMan wrote:

If he was married he could argue that, after a reason (to be specified) his wife said she was going to divorce him and threw him out, but they were reconciled after a less than a month. We all know how volatile things can be in the heat of the moment.  

Is complicated enough without 'suggesting' explanations that may not be the case.

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By Paul D Utherone
20th Aug 2015 12:11

...and

Duhamel wrote:
GrayMan wrote:

If he was married he could argue that, after a reason (to be specified) his wife said she was going to divorce him and threw him out, but they were reconciled after a less than a month. We all know how volatile things can be in the heat of the moment.  

Is complicated enough without 'suggesting' explanations that may not be the case.
there is at least one tribunal case where that was attempted and seen through.
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