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ARTICLE · 23 DECEMBER 2013

CGT: Has Second Home "Flipping" Had Its Day?

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The Finance Bill 2013, published on 10 December 2013, contained further details of the changes announced in the Chancellor's Autumn Statement on second home "flipping" for capital gains tax (CGT).

United KingdomTax
Jenny Cutts
Jenny Cutts

The Finance Bill 2013, published on 10 December 2013, contained further details of the changes announced in the Chancellor's Autumn Statement on second home "flipping" for capital gains tax (CGT).

CGT "flipping" rules hit the headlines in 2009 when the MPs expenses scandal came to light, but the practice has since been untouched by the Government, leading many to assume that "flipping" would continue for the near future.

PPR relief

CGT "flipping" is a product of CGT "principal private residence" (PPR) relief. This is a relief that individuals (and some trustees) are entitled to when they sell their main residence. If the property has been your only or main residence for the entirety of your period of ownership, any gain you make when you sell is free of CGT. If you have more than one home, you can elect which is to be the "main" residence for the purposes of PPR relief.

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