Time for an election?
Everyone is usually exempt from tax on a gain arising on the sale of a property that is their 'principle residence.' If someone has, or has had, more than one residence at the same time it maybe necessary to decide which of them is the 'principal' private residence (PPR).
It is possible to make an election for one or other of the residences to be the PPR for a particular period. HM Revenue & Customs call this an 'only or main residence nomination' and handled correctly it can produce significant tax savings.
Provided a property has at some time been a PPR, either by election, or as a fact, then the final 36 months of ownership automatically exempt from Capital gains tax. If the property has been let at some point then there can be additional relief of up to £80,000.00 (for a married couple / civil partnership) of tax relief.
There are time limits for making elections and it is important that professional advice is sought
Date: 7th March, 2007
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