I have a client who is a Minister of Religion who is going to purchase a property to rent out. There is an intention to reside in the property once he has left job related accomodation. This could be 20 years from now. This will be his first property he has purchased and it will be nominated as his principal private residence for capital gains tax purposes under section 222(8) TCGA 1992.
Am I right in thinking that the client will also be exempt from paying any stamp duty on his first property?
In the below guidance, it states 'It is not necessary that the purchaser must occupy the property immediately following purchase. At the effective date of the transaction, there must be a clear intention to occupy the dwelling as the purchaser’s only or main residence and the fact that circumstances make it either impossible or impractical to immediately occupy the dwelling do not prevent relief being due'
https://assets.publishing.service.gov.uk/government/uploads/system/uploa...
Replies (2)
Please login or register to join the discussion.
How can it be nominated as his PPR? To nominate a property as your PPR your must actually use it as your residence.
For example, if you have two properties, a flat near work you use in the week and a country property for weekends. Then you can nominate your PPR
When you rent a property out, it is most certainly not a PPR so no s222(8) election can be made.
To get the SDLT relief for first time buyers, the purchaser must intend to occupy the dwelling as their only or main residence - took me about 20 seconds to find HMRC's guidance on the matter. HMRC will look at the facts of each individual case, the fact that they may not reside in the property for 20 years will most certainly work against your client.