The pros and cons of changing your main residence.
Property is one of the most reliable investment opportunities around in a period of historic low-interest, with many money-savvy people these days end up owning additional properties.
Whatever your reason for owning multiple residential properties, it’s important to think hard about which you define as your main home for legal and tax purposes.
This is because if you decide to sell your ‘main residence’ or ‘principal private residence’, you will usually be exempt from capital gains tax on the sale through private residence relief.
If you sell an additional property, on the other hand, you could face a hefty tax bill.
That’s why some people practice what is known as ‘flipping’ – ascribing main residence status to a property they’re planning to sell in the near future.
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