CG64520 - Two or more residences: form of notice

There is no statutory form for a notice under TCGA92/S222(5), or for a variation of such a notice, but the following conditions must be fulfilled.

• A nomination by an individual is to be made by notice to the Inspector and is to be signed by the individual. TCGA92/S222(5).
• A man and wife or civil partners of each other who are living together can have only one main residence for both. If a nomination affects both of them it is to be made by notice in writing to the Inspector and signed by both of them. TCGA92/S222(5). See also CG64525 regarding elections on marriage or on registering as civil partners of each other.
• Where one or more or the residences is occupied by a person entitled to occupy it under the terms of a settlement the notice in writing to the Inspector should be signed by the trustee of the settlement and by the person entitled to occupy. TCGA92/S222(5).

A nomination will apply from the beginning of the period to which it relates - the date on which a person first held a new combination of residences, giving rise to a need to determine which was the main residence.

The nomination will have continuing effect until the earlier of

• the date on which the individuals combination of residences changes, or
• the date from which a variation of the original notice is to apply.

A nomination of a residence as the main residence has effects beyond the year it is made. In certain circumstances a nomination which seemed appropriate in the year it was made will turn out to increase the individual's Capital Gains Tax liability. For example, the nominated residence may not appreciate in value at the expected rate while another residence appreciates at a faster than expected rate. So the nomination may turn out to relieve the gain on the less valuable residence. For this reason a nomination must be signed by the persons specified in CG64520. The signature of an agent is insufficient.