If a house is your PPR then you do not have to pay any tax when you sell it. However, if you own more than one house then the HM Revenue & Customs may question which house is your PPR. Good documentary evidence could clarify the position. This would include:
- Utility bills in the taxpayer’s own name.
- Receipts for home insurance, telephone bills, DVLA records or credit reference agency records showing that the address was used as the main residence during the PPR period. Information considered in evidence in the past has included fuel bills which suggested that a property was unoccupied for part of a winter when the taxpayer claimed it was being used as his PPR.
- The address should be the voting address on the electoral register.
- Receipts proving purchase of furniture and furnishings for the property. Delivery notes.
- Bank registration should show the address.
- The type of mortgage. It would be preferable for the mortgage to be a standard mortgage rather than be a ‘buy to let’. However, many mortgage providers are not adverse to a property originally purchased as a main residence with a standard mortgage becoming a rental property and as such do not require amendment to the type of mortgage.
- Registration of owner with a local doctor.
- Dates of advertising for sale.
- Photographic evidence of residence.
- Proof of locality in proximity with the owner’s children’s school.
- Residence of a partner – where do they live?
- Commuting time to the taxpayers’ workplace.
It may also be a good idea to introduce yourself to the neighbours to let people know that you live there.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.