CGT liabilities to buying family home whilst abroad

[Incredulum]

TCGA92/S222 (7) (a) & (b) is quite specific and was put in place to provide the no gain/no loss inter-spousal transfer between resident married, and later, civil partners. Regards Peter

Not at all. That is s58 TCGA.

[Peter D]

Does anyone have practical experience of the application of this point. ??

Regards Peter

[Incredulum]

Let's assume for a moment that I'm wrong in my analysis of the legislation, and Peter D's gut instinct is right.

Tell me Peter D, if OP were to do as I suggested, how WOULD you go about computing the CGT that you allege to be true?

What do you think the legislation tells you to do?

[Peter D]

I interpret it such that W will inherit the date of transferor's acquisition and W's PPR will commence the day she moves in. On disposal the period prior to her moving in will be exposed to CGT as it would have been if H kept it in his name or they keep it in joint names. Regards Peter

[Incredulum]

Fine.

Therefore, if H transfers 50% to W after they have moved out of a property and it has become a BTL, then W inherits H's history and obtains PPR relief?

And if not, given your above comments, why not?

[Peter D]

What you pose is not what the OP asked about. But to answer your question.
"The relief will again be computed taking into account the ownership period of the transferor but by reference to the actual position of the transferee (i.e. the transferee is still deemed to have acquired the property back dated to the date of the acquisition by the transferor but entitlement to relief’s is based on the transferees own position)." i.e. did H live there. Well not for the first 3 0r 4 years acording to the OP. Regards Peter

[Incredulum]

Of course it's not OP's situation.


You and I disagree on the answer to OP's situation. Therefore we are discussing how the legislation works. Please therefore answer my question.

What happens in the following event: H buys a house and lives there with W as their main residence for a while. Then they move out and let it. Then H transfers half the property to W. Does W get PPR relief?

[Peter D]

"The relief will again be computed taking into account the ownership period of the transferor but by reference to the actual position of the transferee (i.e. the transferee is still deemed to have acquired the property back dated to the date of the acquisition by the transferor but entitlement to relief’s is based on the transferees own position)."

This was a quote from the DTE Tax Brief which is a summary of all the appropriatre tax laws associated with such matters. As it clearly states the "entitlement to relief’s is based on the transferees own position". If she lives there then relief will apply for the duration of that period. As you know if they had done this whislt living there then the releif period will be the same as the acquisition date.

Regards Peter

[Incredulum]

So is that a "yes" or a "no"?

[Peter D]

What part of "The relief will again be computed taking into account the ownership period of the transferor but by reference to the actual position of the transferee (i.e. the transferee is still deemed to have acquired the property back dated to the date of the acquisition by the transferor but entitlement to relief’s is based on the transferees own position)."
Do you not understand. Read PPR instead of relief or are you just playing silly beggers.

PPR will be inherited for however many whole months she had lived there with the owner.

Regards

Peter