I have just registered a change of address on HMRC website. It asked if I lived in two places and I answered 'No' but now not sure if that was technically correct. My wife and I have just moved into rented accommodation while we get our own flat refurbished ready for selling. Although we now live in the new rented flat, I do still own the original flat and was wondering if that has a tax implication please? We will visit the old flat from time to time while we clear and refurbish it, but we won't be staying there.
Arthur Weller replies:
It seems that you have done the correct thing. You are not living in the original flat any more, nor do you intend to do so in the future. As far as capital gains tax principal private residence relief is concerned, the last 18 months of ownership are deemed to be a period of occupation, so most likely you have lost nothing by this notification, because there is a very good chance of being able to sell the property within 18 months of moving out.
This question was first printed in Tax Insider in March 2018.