Backdating capital gains tax

The two-year period runs from the date that another property started to be used as a residence.For example, in the Ellis case, having bought the property in 1999, the couple rented it out until August 2004.

After all, it appears to be clear from the wording of s 222(5) that taxpayers can elect conclusively which residence is their main residence for CGT purposes.It states: “(5) So far as it is necessary for the purposes of this section to determine which of 2 or more residences is an individual's main residence for any period— (a) the individual may conclude that question by notice to an officer of the Board given within 2 years from the beginning of that period but subject to a right to vary that notice by a further notice to an officer of the Board as respects any period beginning not earlier than 2 years before the giving of the further notice…” Residence Two key words here are ‘residences’ and ‘main residence’.The fundamental requirement for making the election is that each property must actually be the individual’s residence for private residence relief purposes.They then occupied the property as a residence from 1 October 2004.Thus they would have had until 30 September 2006 to make a main residence election.

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