Selling PPR after 1 year but also have second home.

[flowstone]

Hi

We are currently looking to sell our apartment which is our PPR that we have occuopied for 1 year. it is section 23 and we have availed of Owner Occupier relief.

I also own a second house that I bought 4 years ago. We had this house on the market last year but the slow down meant that we did not sell.

We ar now expecting a baby and want to move back into the original house and sell the apartment. Can I simply sell this and re-elect to have the first house as our PPR. Are there any tax implications I need to understand better.

From what I understand, we should not owe CGT or stamp on the apartment as it is our PPR. We may get hit for 1 year pro rata CGT on the house if we sell it in the future. Is this correct?

Thanks

FS

 

[Howitzer]

Re: Seeling PPR aft6er 1 year but also have second home.

You've probably got it about right. Revenue may query you on the various transactions here as it is a strange route to be going and may be perceived as a tax avoidance trick. Not many people move from a house to a S23 apt, and then back again. As long as you never rented out your original house (stamp duty clawback) you should be ok.