Avoiding Gain Tax when selling second house...

Here is a case i am wondering about:

2 houses: one is PPR (House 1), the other is rented (House 2).
Want to sell House 2 but not pay Capital Gain Tax, (and do not want to sell House 1)

So idea is to move into House 2 so that it becomes PPR, then sell it (do not pay CGT as it is now PPR) and then move back into House 1

Does that work?

How long do i need to live in house 2 for it to be my PPR?

Thanks

You will not totally avoid CGT in this way. Since house 2 was rented at least a portion of the resale gain will be assessable for CGT anyway even if it becomes your PPR. Even if house 2 legitimately becomes your PPR in the meantime then what happens house 1? If moving into house 2 as your PPR is feasible then you might be better off selling house 1 and making house 2 your permanent PPR. You should get independent, professional advice on tax matters such as this to avoid falling foul of the relebvant tax rules.

Also, must notify Inspector that 2nd house is to become PPR... only when the Inspector agrees, is the 2nd house deemed your PPR.

In addition, there should be no profit motive - PPR relief does not apply where there is a profit motive from the outset (as there would be here).

Finally, Section 811 of the Taxes Acts is an anti-avoidance provision that states that where something is done solely for the avoidance of tax, then Revenue (through the Courts) can go after you.