Does living for 12 mths in your IP exempt you from CGT later on when its sold? Or for only the portion of the time that you were living in it? If yes.. then whats to stop me renting out my own family home for that 12 mths while I have an extended holiday in my IP?
You can only claim one property as your main residence. So moving into the IP will mean if will be tax free that the period you live there, but at the same time, your home may be CGT liable for the period you didn’t live in it.
Terryw
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As Terry said,
if you did not live in the property before it became an IP, then CGT is based on the proportion of the time that the property was an IP. So living in it now will reduce the CGT when you sell it, but you can only have one PPR at a time. So depending on the potential capital growth on your current PPR, will determine which property should be claimed as the PPR. Obvioulsy you want the PPR to be the property with the rgeatest capital growth.
Run sum figures and see what you come up with.
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