A tale of two houses

29 November 2006

Issue: 4086 / Categories: Forum & Feedback

A member of the armed forces lives in job-related accommodation. He has also purchased a property that he has never lived in, but intends to do so in the future. We understand that this should benefit from full capital gains tax exemption provided it is sold either at the time that it is no longer his intention to Iive there and he still occupies armed forces' property, or when he has moved out of armed forces' property and has moved into the property before selling it (TCGA 1992, s 222(8)).

A member of the armed forces lives in job-related accommodation. He has also purchased a property that he has never lived in but intends to do so in the future. We understand that this should benefit from full capital gains tax exemption provided it is sold either at the time that it is no longer his intention to Iive there and he still occupies armed forces' property or when he has moved out of armed forces' property and has moved into the property before selling it (TCGA 1992 s 222(8)).
What is the situation if he buys another property so that he has two properties whilst living in armed forces' property? Is he obliged to make an only or main residence election under TCGA 1992 s 222(5) as to which of his non-armed services properties is the property he intends to live in once he leaves the...

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