From: "Robert" 
Newsgroups: uk.finance
Subject: Re: 2nd property sale and CGT
Date: 13 Dec 2006 00:58:53 -0800
   posting-account=wea8Vg0AAACWFrs1xUCYLe2RbiaiU7wT


Ronald Raygun wrote:
> Robert wrote:
>
> >
> > Tim wrote:
> >> > Robert wrote:
> >> >> That's all very true, but if this is the OP's second house he needs
> >> >> to remember that he cannot have two PPRs at the same time.  If
> >> >> he lives in this one for 6 months he will lose 6 months PPR in his
> >> >> current house. It may well still be worth doing, but there might
> >> >> be a CGT liability on his current PPR which he should consider.
> >> >>  He gets 3 years PRR on the second house but loses 6 months
> >> >> PRR on the first (unless he sells it within 3 years of moving out).
> >> >
> >> "Ronald Raygun" wrote
> >> > Sure, but loss of 6 months' PRR on a long-term main residence
> >> > is likely to be negligible.  A sale after 10 years of ownership
> >> > would make only 5% of the gain taxable.
> >
> > well, 5% of a 10 year increase in the first house's value might be
> > larger than 100% of 0.5 year gain of the second house's value.
>
> Possible but unlikely, and in any case irrelevant unless the 2nd
> house has only been owned for half a year.
>
> > In both
> > cases the amount is  6 month's apperciation in the house's value.
>
> No.
>
> >  the
> > advatage of taking the hit on the first house is that you dont have to
> > pay it until later, when/if you sell it, plus the taper relief that you
> > mentioned.
>
> No.
>
> The point is that moving into the 2nd house for a "decent" interval
> (6 months was suggested) would establish bona fide PPR status of the 2nd
> house for at least part of the period of ownership, thereby acquiring
> entitlement to 36 months' worth of gain exemption and therefore up to a
> further 36 months' worth via Letting Relief.

Sorry, yes of course, you are right.

Robert