A recent case highlighted some important points regarding Private Residence Relief (PRR).  PRR is the mechanism that prevents capital gains tax being charged for most people when they move house.  However PRR can get a little bit complicated especially when multiple houses are owned:

• For PRR to apply, you must properly live in the house.  This must be evidenced for example through having all bills in your name and using local services such as schools and doctors.
• There must be a degree of permanence, continuity or expectation of continuity for PRR to apply.
• If you have more than one private residence you can elect which one PRR applies to.   PRR can only apply to one residence at a time.
• PRR is denied if the purpose of buying the property is realising a gain.

  As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us.