UK Landlord Forum / Life

Hi All,

So I got a mail today that mentioned PRR and the 2 year time limit you have to notify HMRC of your nominated house....   and I started to panic.. (HMRC does that to me)

So I thought I'd come here, for you sensible people to calm me down and let me know what I need to do

So about 18 months ago, me and my missus bought a house to rent out, while interest rates were low and that once our current contracts run out at work, that we will eventually move into...  it has been rented now for about 14 of the 18 months..  but:

1.  Do we need to tell anybody (HMRC), that our current house (that we have lived in for about 13 years), is our nominated house, so that we don't have to pay any CGT on it, when we come to sell it to move into the one we just bought to rent out?       I thought we wouldn't need to as I thought it was only if you actually kind of flitted between the two houses and lived in them both, that you had to nominate one..

2. If in a couple of years time, we do sell our current house, and move into the one we currently have rented out, will that 2/3/4 year timespan that it was rented out for always have some clawback from the HMRC for CGT, should we ever decide to sell it and move on?       I'm not sure on this one.

Thanks for any and all information..

The rules are complicated, but you can research this yourself.

As I remember, when you sell a house you have ever lived in, you ignore the last two years for any CGT.

But you do need proof you lived there.

If you plan on moving into the property after you sell yours, I would elect this house as your PPR from now, that way when you sell yours, if in the next two year it will be free of CGT, and you'll have two years "free" on your rental.

It really depends on how much you wish to play with a straight Bat.

Are you more Gary Barlow, than Sainsburies, more Amazon than me.....

If property prices haven't moved then its not an issue, and in any event, even if you kept your existing as PPR, then if you sold your rental, even if you move in for 1 night you still get the last 2 years gain free... But as I say do the research yourself.