I have Spanish residency, live mainly in Spain, and pay my taxes here. I have two properties in the UK, which I rent out. I now wish to give up my Spanish residency and just do the 90 days in Spain so I can just pay my tax in the UK. I don’t want to live in either of my UK rented properties as they are my source of income. I also have a holiday caravan in the UK, which I can live in for more than half of the year; however, I cannot use this as my main residence. My question is: can I use one of my rented-out UK properties as my main UK address for tax, etc., purposes, even though I rent it out?  

Arthur Weller replies:  

Unfortunately, what you propose is not possible. HMRC’s Capital Gains Manual states emphatically: ‘occupation is a requirement’, and a property that is not lived in as a principal private residence cannot be nominated as a main residence for capital gains tax purposes (see CG64465).