Primary residence

[oldgit72]

I am in the process of buying a property made up of 3 houses and 1 barn together with 2 hectares of land. I intend to sell on 1 of the houses and some of the land as soon as possible as it does not meet my needs, providing I do not get stung for 33% CGT on any profit made. Does anyone know or has had experience of this scenario and whether it is possible to designate the part of the property being sold as your primary residence thus avoiding CGT and also the implications to the remainder of the property and its status as PPR once the previously designated PPR has been sold on.

 

 

Thank you

[Panda]

Hi

When we sold up we were charged CGT because we had two houses and it was pointed out that they couldn't both be our primary residence, we had run a gite from one so that also made things clear that we didn't live there.

The thing to do (in my opinion) is to say the purchase price of the property you want to sell was very near to the price you are selling it for , that's what we did and so paid a small amount of CGT.  So in short you could say afor example of the 200,000 we paid for the whole property, 50k of it was for this house which is now being sold for 51k, thus you will pay 33% on 1k.  As you are selling it so quickly after buying you would not be expected to make much profit so I can't see anyone questioning this logic. 

The notaire we used was very supportive of this model and actually worked to ensure we paid as little as possible CGT but said it was better to pay 'something' rather than try and get away with paying nothing only to be chased for it later.

Panda