My wife and I purchased a second property in Devon two and a half years ago, and now live in the property for approximately nine months of the year. I contacted the local council to ask if we would be liable for double council tax, and they stated that we would but that if we advised that our Devon address was to be considered our main address and changed our details on the voters' roll and contact details for all utilities, driving licence, bank details, etc., we would not be subject to double council tax. 

This would seem to make sense to us. We plan to sell our second home in the next five to ten years and move back into our original home. Would this course of action affect us negatively in terms of tax implications? 

Arthur Weller replies:  

For capital gains tax purposes (CGT), if you don't make a valid election, it is a matter of fact which of two properties is your main residence for CGT purposes. See HMRC’s Capital Gains Manual at CG64545, where it states: ‘In practice the main residence is not necessarily the residence where the individual spends the majority of their time, although it commonly will be.’ A person cannot have two main residences for CGT purposes at the same time – it is either one or the other. When Devon council state that you could make your Devon address your main address, it is not clear to me whether they require you to make a CGT election. On the assumption that you make a CGT election for the Devon property to be your main residence (if you are in time to do so), your original home would not be considered your main residence. But in light of the information given, it could be that you have nothing to lose.