The old main residence will count as such if it is the individuals main residence at the point of sale, or at some time during the period of 3 years before the purchase (subject as below). On sale it is a matter of fact as to whether it is the main residence.
How long do I have to live in a house before it becomes my main residence?
There is no fixed amount of time you have to live somewhere for it to be treated as your home, but it is generally considered that you need to be there for at least six months to convince HMRC that it is actually your home. It also helps to register to vote at the property and to have your post redirected to it.
Can a property that is let out be a main residence?
A property that is let out cannot be a nominated main residence. However, where, for example, a property has been a main residence before being let, letting relief may be available to reduce the gain. The final period exemption will also be available.
Can a couple have more than one main residence?
Married couples or members of a civil partnership are only allowed one main residence for tax purposes between them. However, when a couple marries or enters into a civil partnership and each has a property, they have two years from the date of marriage to nominate which property is their joint main residence for CGT purposes.
Do you have to choose which house is your main residence?
Of course, there are some conditions that need to be met, but this ability to choose which property is the main residence for tax purposes is a useful planning tool in minimising the CGT liability that may ultimately be payable on the sale of their homes.
When do you move out of your main residence?
If you own a property which is currently your main residence you can move out of the property for up to six years. During that time you can earn rental income on the property and claim a tax deduction for expenditure as you would with a normal investment property.
