You can classify one property as your primary residence. If you’re married, you and your spouse must claim the same property as your primary home.
What is my main residence?
To be considered as a main residence for tax purposes, the property must be a dwelling house, or an interest in a dwelling house which is, or which at some point during the period of ownership been, the individual’s only or main residence.
What does replacing your main residence mean?
Replacement of main residence The exception is only where the main residence is replaced. Therefore the purchase of a main residence in any other circumstances would still attract the surcharge. So if a buyer owns an investment property and then buys a property to live in, the new purchase will attract the surcharge.
Do you have to choose which house is your main residence?
Of course, there are some conditions that need to be met, but this ability to choose which property is the main residence for tax purposes is a useful planning tool in minimising the CGT liability that may ultimately be payable on the sale of their homes.
Can a property that is let out be a main residence?
A property that is let out cannot be a nominated main residence. However, where, for example, a property has been a main residence before being let, letting relief may be available to reduce the gain. The final period exemption will also be available.
When do you move out of your main residence?
If you own a property which is currently your main residence you can move out of the property for up to six years. During that time you can earn rental income on the property and claim a tax deduction for expenditure as you would with a normal investment property.
Can a couple have more than one main residence?
Married couples or members of a civil partnership are only allowed one main residence for tax purposes between them. However, when a couple marries or enters into a civil partnership and each has a property, they have two years from the date of marriage to nominate which property is their joint main residence for CGT purposes.
