wellinever

Has anyone, resident and Tax resident in PT, with a property in both countries, tried to nominate the PT house as the principle home?
If so how easy is this to do and is there a particular HMRC form that can be used.

RichardHenshall

Surely if you're resident and tax-resident in Portugal, your principal home must be in Portugal (ie not in the UK) and therefore it's of no particular importance to HMRC? What would be relevant to HMRC is when your UK property ceased to be your principal home (assuming it once was).

SgtTroy

That would be the case as far as AT is concerned.

As far as HMRC is concerned it is not that simple...

wellinever

Exactly so. If you only recently left the UK to take up residency in PT, HMRC is still interested in any gains made on what they would consider a second home property, and in a simple way it would not be a problem as Tax on gain in PT on main home, (ie 50% of gain taxed at nominal rates) is actually lower than CGT in UK on second home, so double taxation would apply. But of you want to sell a PT home and buy another in PT, then whilst thjat is OK in PT and tax paid on the difference, the UK has no such allowance and would demand full amount (which of course one could have already spent on the reinvestment in PT.
Hence my question regarding nominating a PT home as main property, as that way anyone considered to be a tax resident of UK, as well as PT, would enjoy PPR on their main home which would be in PT so no CGT for HMRC.
The fact that one is Tax resident does not mean that HMRC isn`t interested in any gains made on overseas property, esp if one returns to UK, in future I think the time is now 6 years.