Swapping Property

[tamborine]

If you swap private dwelling to use as a holiday home, is there a tax liability ?

[FredPuli43]

Not sure what you mean by swap. Do you mean that you have two properties and wish to use one as a holiday home rather than as your existing home? Tell the Revenue that one or other is your principal residence, and elect it as that; capital gains tax arises on the sale of the one you didn't elect.You can change your election. Or do you mean a change of use of your own home as a holiday home for others, as a business, you not living there at all?

[tamborine]

bruv has Bournemouth bungalow that he wants to swap with my Middx maisonette to be nearer London. No money exchange, just a straight swap. I know I have to pay LRegistry costs but am I liable for any other tax costs?

[Nibble]

Try checking through here:

http://www.hmrc.gov.uk/sdlt/intro/basics.htm

http://www.hmrc.gov.uk/sdlt/reliefs-exemptions/no-sdlt-return.htm

Specifically, this seems to cover what you are intending....

Property transactions where no money or other consideration changes hands

Property or land may be given away or the ownership transferred to another person for no 'chargeable consideration'. This means that no money changes hands, and there is no other exchange which has a monetary value, such as a mortgage debt. This type of property transaction is exempt from SDLT and HMRC doesn't need to be notified.

However, I'd run this past HMRC to clarify their take on it.