CGT on BTL property sale - owner/occupier relief

[alphonso]

In 2013 I briefly lived in a BTL flat (7 months) whilst renovating my main home. Other than the main services, I didn't register anything else there as it all still came to my house.

Now the flat has sold and I'll be paying CGT when I fill out my tax return later this year. Does anyone know if this would qualify for owner/occupier relief?
The tax relief is quite generous (£40k tax free + 18 months tax free), so it's worth chasing.

I'd also be interested in anyone's experience of filling out the tax return claiming this relief and whether the HMRC followed up with additional requests for proof of occupation.

[DoubleSix]

The relevant reliefs are PPR (principal private residence) and lettings relief, you may be in a position to benefit from both...

Have a link:

https://listentotaxman.com/uk-tax/tax-guides/capit...

[Eric Mc]

If, at the time, it genuinely was your main residence, you should have no problem. You will get relief for the 7 months plus the additional 18 months.

The 18 months is reducing to just 9 months from 6 April 2020.

HMRC is perfectly within their right to ask for evidence that it was your main residence for the period you are claiming. If it really was your main residence, you should be able to provide that evidence is asked.

[Alpinestars]

You’re unlikely to get the £40k you refer to, as that’s the cap. On top of that, depending on when you sell the property, you may not get any letting relief.

Edit to add note to self: read the facts. I see you’ve already sold it so will be eligible for letting relief.

HMRC will look for bills, evidence of real occupation, did you have another residence, your intention etc.

Edited by Alpinestars on Friday 14th June 10:53

[alphonso]

ok thanks.. I guess I'm interested in two things here. Firstly, as my main residence was being renovated, can my rental flat (where I stayed for those 7 months) also be classed as a main residence? The evidence I have is council tax and energy / water bills.. but not bank statements or any other bills as they kept coming to my main house.

The second point I'm interested in is anyone's experience of claiming this tax relief and how much the HMRC scrutinised the return, if at all.

[Alpinestars]

You cannot have two main residences at the same time. You could have elected for the BTL to be your main residence, but you’re out of time. Therefore, HMRC will look at the facts. And whether they look into it, will depend on the size of the gain and the individual inspector who is assigned to look at your returns - it may never get looked at. But you shouldn’t be making a claim unless it was your principal residence during those 7 months. Factors HMRC and you should consider include, but are not limited to;

If you have a family, where did they spend their time?
If you have children, where did they the go to school?
At which residence are you registered to vote?
Where is your place of work?
How is each residence furnished?
Which address is used for correspondence?
Banks & Building Societies
Credit cards
HMRC
Where are you registered with a doctor / dentist?
At which address your the car registered and insured?
Which address is the main residence for council tax?

Bear in mind, any time that you elect or factually have another PPR, will impact the gain you pay tax on on your own house. You save 7m, plus 18 on the BTL, and have to pay tax on 7m for your main house.

Edited by Alpinestars on Sunday 16th June 23:21

[alphonso]

Thanks Alpinestars.. that's really useful, much appreciated