How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam , Accountant
Category: UK Tax
Satisfied Customers: 13545
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Type Your UK Tax Question Here...
Sam is online now
A new question is answered every 9 seconds

I purchased my mothers house in Nov.2011.with the idea of

Resolved Question:

I purchased my mother's house in Nov.2011.with the idea of living there at a later date. House has been empty since I purchased as I have my main residence where I have lived for 29yrs on the market. I plan to move to other house later this year whether or not I have sold my main residence. Where do I stand with CGT if my main residence is still not sold. Also where would I stand if I decided to let main residence while it is still on market. I pay Council Tax on both properties & if I hadn't sold main residence on moving & decided not to let I would continue to do this as I would probably return to property for the odd weekend. Please can you help as I am confused as to where I stand with CGT. Thank you.
Submitted: 3 years ago.
Category: UK Tax
Expert:  Sam replied 3 years ago.



Thanks for your questions



Lets look at how things are, and whether there is scope to better them.

Your mothers house, will always have a capital gain implication for the year that it has stood empty, as things currently stand, due to the fact that you have a main residence during this period, in which you remained resident. But if you then take up residence there, then this will only be a concern, when and if you come to sell in the future, when that 12 months period will need taking into account.


Your current main residence, has (until now) been your main residence throughout, and so you have the time you lived there, plus a further 36 months after you move out, that will be covered under the private residence relief rules, so even if you have not yet sold your main residence, then there will only be a capital gain implication should it take more than the 36 months, from the date you leave this property. And this 36 months exemption applies, even if you let the property out.

But if you decide to keep it, then after this 36 months, then a capital gain position arises, which may be reduced if you decide to let it out to tenants, as a further relief called private lettings relief is due, which can allow up to a maximum of £40,000 exemption on any arising capital gain, and of course you have the annual exemption allowance - which currently allows a further £10,600 exemption in the year any gain arises.

If, however you chose to keep this current main residence, for weekend use, then just the private residence relief is considered, so if you hold onto this property beyond the 36 months, then a capital gain will arise.

If you let the current main residence, then this will require you to declare rental income to HMRC.


Now to look at whether this position can be bettered.


You do have the option to elect that your mothers home be treated as the main residence from the date of purchase, and as long as this election is made within 2 years of the purchase of your mothers home (so by Nov 2013) and this would mean that you clear yourself of any capital gain arising on your mothers property, as you plan to move here, however, this will really only be of benefit IF you sell your current main residence within 3 years from Nov 2011 (so by Nov 2014) because by making this election the current residence ceases to be physically the main residence from Nov 2011 ( as you can only have one elected main residence at the time)

And of course will have no benefit it you plan to keep your current main residence , for weekend visits (as then its just swings and roundabouts as there will still be a capital gain of the same position arising, its just a question of which property this additional year sits with)


So its really a case of reviewing the position nearer to the time that you make the move, and establishing your intentions at that time (as to whether there has been any interest in selling the property, or whether you plan to let the property out)


But if you need more advise at that time, with your actual intentions, you can always come back to Just Answer, and ask for me Sam Tax, if you would prefer (just ask for Sam Tax in your opening sentence)


If you have any follow up question, then please do ask, but if you ensure that you rate the level of service you have received, it would be appreciated, as this ensures I am paid for time and expertise. And any feedback and bonus are always welcomed.







Sam, Accountant
Category: UK Tax
Satisfied Customers: 13545
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Sam and other UK Tax Specialists are ready to help you

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA

Meet The Experts:

  • TEAP007


    Tax Preparer

    Satisfied Customers:

    Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years
< Last | Next >
  • TEAP007's Avatar


    Tax Preparer

    Satisfied Customers:

    Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years
  • Andrew Baker(baktax)'s Avatar

    Andrew Baker(baktax)

    Personal Tax Adviser

    Satisfied Customers:

    35+ years experience in income tax, CGT, non-residence
  • berduchwal's Avatar



    Satisfied Customers:

    Qualified accountant and bookkeeper running my own practice since 2008.
  • Mrs-Tax's Avatar


    Tax Adviser

    Satisfied Customers:

    Law Degree, 19 years in UK Tax.
  • Thomas's Avatar



    Satisfied Customers:

    Exposure to general tax issues
  • AnthonyL's Avatar


    Tax Adviser

    Satisfied Customers:

    ATT, ATII, 12 years tax experience
  • Simon Hamilton's Avatar

    Simon Hamilton

    Chartered Management Accountant

    Satisfied Customers:

    CIMA - Chartered Institue of Managment Accountants