Marital Disharmony / Main Residence

[mybets@www.com]

What is the 'main residence' position when one marriage partner moves out of the family home into separate and different accomodation ? At what stage is he/she in a position to regard or to elect the new accommodation as his / her main residence for tax purposes ? Are there any conditions ? Is any correspondence notifying the Inland Revenue of the changed position necessary ?

[steve@nunn-hayward.c]

If you mean"move out" as in marriage breakdown the rules are :-

For Capital Gains Tax (CGT) and Income Tax (IT) the date you cease living together is relevant. For Inheritance Tax (IHT) it is the date of any Decree Absolute.
The spouse leaving for CGT main residence relief purposes has 3 years to transfer/sell his interest before the exemption is exceeded.

If you mean "move out" as in working/temporarily away then until the stay away turns into a pemanent one, as a couple you can only have one Main residence. In these circumstance an election to opt for the property likely to trigger CGT charges should be considered within 2 years from aquiring the second property.

If you are seperating permanently there are a lot more points to be reviewed from a taxation point of view alone and further advise should be sought.

I would be pleased to assess your requirements and advise on the best way forward.

If you wished to pursue, please call me.

Regards

Steve Cook, ATII
Tax Partner,
Nunn Hayward, Chartered Accountants
01753 888211