'Flip' Your Second Home to avoid Tax, says the Telegraph
by Richard Reeves
The newspapers have yet to tire of the details of the expenses row. The practice of 'flipping' homes to avoid Capital Gains Tax has come in for particularly harsh - and justified - criticism. But it may be that MPs were simply following the advice offered in the same newspapers' personal finance sections. Consider the following:
‘Become a butterfly and flit between homes. Or in the jargon, switch "principal private residence" exemptions between properties. All gains on property are taxable with the exception of the home you live in which the taxman calls your principal private residence. However, if you own more than one home you can elect which you wish classed as your primary residence, provided there is some evidence that you have actually resided there, albeit shortly. If you live for even a matter of weeks at any stage in your "second" home, this enables you to write off the last three years of capital gains when you come to sell.’
Excellent advice, in a piece by Teresa Hunter headlined 'Home, sweet Second Home', published on 25th June 2007 in the Daily Telegraph. The piece also urges money-conscious readers: 'Don't forget to claim expenses'.
Robert
Yes I can understand that an MP does not know he is doing wrong by flipping, but knows that going to war on a lie is well good for the public view and Blair's bank balance . yes I suspect New labour has a lot of MP's and Minister who cannot tell moral law from legal
david woods
My parents signed their house over to me over 8 years ago They did this because it looked likely that they would need nursing home care at soe time in the future and we did not want to have to pay charges thereby selling their house to pay for the fees.
Thus I have 2 houses.
If I sell my fathers house(my mother has died) will I have to pay capital gains tax. If I do how can I avoid this ie flip my home can I do this and how do I do it? It seems really unfair that I should paytax aftr havingpaid tax all my life when some people pay none