In today's Sunday times there is a large article that claims it is possible to avoid UK capital gains tax by declaring a foreign prorerty to be your principle residence for a brief period (and claiming the 3 year exemption). It strongly implies that making the declaration is merely a administrative task and that there is no need to actually do anthing other than make the declaration. Great if True, but I understood that the Inland Revenue could ask for proof that a residence really was your principle residence and would be very likely to do this for BTLs holiday homes etc. Does anyone know if the Times is correct, Regards Alan

Alan, I read the same in a tax update from a reputable firm some time ago. I will try to see if I can find it but I believe it said that there are no firm and fast rules and that it is possible to do this. I'll report back if I find the article. Huw

I saw the article too. I have logged it to question my accountant over the impact to myself. I have a house in Spain which I bought about 3 years ago and only just have had the title deeds transferred, am in the process of buying a flat in Wroclaw Poland completing next month and a property in Wimbledon which i let out. Particular questions I have are :- How long do you have to live in the property which is earmarked as your prime residence ? What does it mean you get the last 3 years capital gains tax free ? It is not very clear on this point ! Any other readers of this have any comments too ? John