Sign up to get our free landlord tax strategies

To receive our seven FREE landlord tax saving strategies just simply complete the form below and the first strategy will be emailed to you immediately.

Sign up to get our free landlord tax strategies

Thank You!

Seven FREE property tax busting strategies reveal the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Will any of that initial period (renovating and friend occupation) be included in our private residence period for tax purposes?

Question We bought a house in 2006, our only property at the time. We were living elsewhere in rent-free accommodation, part of my husband’s work. We spent 18 months renovating the house ourselves. Our friend then lived in the house, paying most but not all of the mortgage. Probably irrelevant, but we paid the council tax. We then moved into the house in 2010 and lived there until the end of 2015, when we purchased a second house which has become our main residence. We have rented out the first house out ever since but would like to sell early next year. We're not sure if any of that initial period (renovating and friend occupation) could be included in our private residence relief period for capital gains tax purposes.

Arthur Weller replies:

Look at HMRC guidance in its Capital Gains manual (at, where you can see that if the initial period can be classified as 'qualifying job-related accommodation' then it can be deemed occupied as far as the main residence relief rules are concerned. As far as the period the property was occupied by a friend is concerned, if the amount that they paid could be construed to be a commercial rent, then you can be eligible for lettings relief for this period - see the end of

Property Tax Insider This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.

The first issue is free so click here to try today!

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question