cgt on a future house sale and renovation

[curious mick]

thanks for any advice or info in advance,
We bought a house this year and the house was original most likely to be two dwelling ,(one upstairs one downstairs in a detached house) the upstairs was never completed just had a floor. we have started renovating it so it will add 2/3 extra bedrooms . its our ppr but we do travel and stay at family and friends for work(3days a week) so next year we are looking to buy nearer to that work,

i believe there is a rule for enhancment cost ,( i wont have all the receipts , not including family work and other local tradesmen but most of them)
I understand cgt relief will come into it if it starts being rented. but should we get it valued before considering renting or just a waste of time,

I will also have a option of working there 3 months of the year and have people stay during that so is there an option to change your ppr for a situation like that for seasonal work and try rent the rooms while im there.

any input appreciated

 

[TomEdison]

i believe there is a rule for enhancment cost ,( i wont have all the receipts , not including family work and other local tradesmen but most of them)
I understand cgt relief will come into it if it starts being rented. but should we get it valued before considering renting or just a waste of time,

I don't think a valuation is going to be relevant to your CGT liablity. For a CGT calculation, all that matters is (a) how much you spend to acquire the property, (b) how much you spend enhancing the property and (c) how much you get when you sell it. The value of the property at any point along the way doesn't enter into it all.

Even if the property changes during the period of ownership from being your PPR to not being your PPR (or the other way around) the value of the property at the time when that change occurs won't be part of any eventual calculation of CGT liablity.

I will also have a option of working there 3 months of the year and have people stay during that so is there an option to change your ppr for a situation like that for seasonal work and try rent the rooms while im there.

With very limited exceptions, you can only have one PPR at any time, so if this house becomes your PPR then your other house will cease to be your PPR. Even if you could alternate your PPR for 3 months every year, I don't think it would work to your advantage.

 

[curious mick]

thanks, yes you have made it all make alot of sense, thank you,