CGT - Exemption - Unusual Circumstance

[gibbo1000]

My now wife put in an offer for a flat in March 2009. The sale finally went through in February 2010 after numerous issues that had to be resolved. It was a repossession and the plans had been changed so this needed to be resolved before the purchase could go ahead.

In the meantime we got engaged in June 2009 and got married in on the 6th January 2010. My wife now lives with me and has never lived in the flat.

Due to the fact that the flat took over a year to go through and her change our circumstance in getting married, does she/we have a case of being exempt from CGT in that the flat was originally purchased to be lived in and not as an investment? I think I came across something like this on the internet a few weeks ago but I cannot now find that article.

Any help would be very helpful indeed.

Thanks

[mullet]

Unless she or you live in employment related accommodation, an intention to live in the property as a residence is not enough, in your wife's circumstances, to secure private residence relief. PRR depends on physical occupation as a residence, with some degree of permanence/continuity.

What you may be thinking about from other postings is people in employment related accommodation - i.e. people who have to "live in" in order to do their job effectively or properly. Legislation permits them to own a property and have an intention to occupy it as a residence in the future, making PRR available to them. In simple terms it allows them to stay on the housing ladder and have somewhere (owned) to live when they leave their job-related accommodation or retire.

[gibbo1000]

Thanks so much!

[Peter D]

Where did she live whilst the offer was in for the flat. Did she own another property and was it up for sale. As you are now married you could add your self as an owner and double your Capital Gains Allowance to £10,100 each. Is the property up for sale and what sort of gain are you anticipating. Regards Peter