Tax expert reveals crucial property rules for long-term landlords

A reader reached-out about tax rules after selling her London flat which sheʼd owned since the late 70s (her situation got complex after marriage)

The flat-owner married someone who lived 100 miles away; they spent three years living apart meeting only on week-ends. After that she moved to her husbands house and turned her flat into a rental property

Hereʼs what Mike Warburton explains about Principal Private Residence (PPR) relief rules:

• Married couples can only claim one PPR at a time
• They must make joint nominations within 2 years of marriage
• These nominations can be changed with back-dating allowed
• Properties owned before mar-82 use special tax base values
• Tax reporting needs to happen in 60 days after sale

The tax expert points out that while absence rules might help; they dont apply here since she never moved back to the flat. However theres a chance to claim PPR relief if proper nominations were made after marriage – but this would affect her husbands property tax position

The situation needs careful calculations because the flat was bought before the mar-82 tax-base date when property values often doubled. Its best to get help from an estate agent to figure out the proper value from that time-period

“This is a complicated area and with the amount of tax likely to be involved it is sensible that you are taking professional advice“ [[Mike Warburton notes]]

The final advice suggests working with accountants who can do proper math and help meet the 60-day deadline for tax reporting and payment