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Where Taxpayers and Advisers Meet

CGT

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm
Re: CGT

Postby maths » Thu Dec 15, 2016 12:10 pm

A married couple can only have one sole or main residence. It seems unlikely that the home in her own name would qualify as a residence and hence as you don't therefore own two residences there is no need for any election to be filed.

It is arguable that the home owned by wife should you move in temporarily whilst looking for a more permanent home will not qualify as a sole residence and hence no private residence relief would be available.

MazzaMc
Posts:22
Joined:Mon Oct 31, 2016 4:39 am

Re: CGT

Postby MazzaMc » Fri Dec 16, 2016 3:24 pm

Thank you for taking the time to answer my query.

MazzaMc
Posts:22
Joined:Mon Oct 31, 2016 4:39 am

Re: CGT

Postby MazzaMc » Fri Dec 16, 2016 4:07 pm

I still don't understand why the bungalow can't be classed as our main home for a while and qualify for PRR as it will be our only residence when our current home completes soon. Not sure how long it will be until we find somewhere nicer to live.

MazzaMc
Posts:22
Joined:Mon Oct 31, 2016 4:39 am

Re: CGT

Postby MazzaMc » Fri Jul 14, 2017 8:12 am

Would it be worthwhile transferring the bungalow into joint ownership so I could use my CGT allowance?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT

Postby bd6759 » Fri Jul 14, 2017 5:47 pm

I still don't understand why the bungalow can't be classed as our main home for a while and qualify for PRR as it will be our only residence when our current home completes soon. Not sure how long it will be until we find somewhere nicer to live.
Even although it is the only property you currently own, it is unlikely to fall within the defieition of "residence" because you don't intend to live there.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT

Postby bd6759 » Fri Jul 14, 2017 5:48 pm

Would it be worthwhile transferring the bungalow into joint ownership so I could use my CGT allowance?
Probably. But watch out for stamp duty if it is mortgaged.

MazzaMc
Posts:22
Joined:Mon Oct 31, 2016 4:39 am

Re: CGT

Postby MazzaMc » Sat Jul 15, 2017 1:40 pm

Do you have to pay SDLT if we make the bungalow jointly owned? If it's 3% on £190k that would be £5700 so not worthwhile. Any advice would be greatly appreciated.

MazzaMc
Posts:22
Joined:Mon Oct 31, 2016 4:39 am

Re: CGT

Postby MazzaMc » Sat Jul 15, 2017 1:49 pm

Just read that as there's no mortgage on the property and I won't be paying anything for it there's no SDLT due. Can anyone please confirm this? TIA.

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: CGT

Postby AnthonyR » Sat Jul 15, 2017 6:37 pm

There's no CGT on transfers between spouses, but there can be SDLT if they are taking on the mortgage (taking on the mortgage debt is treated as consideration).

If there is no mortgage and the share is being gifted then there is no consideration for SDLT purposes and as such no SDLT to pay.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

MazzaMc
Posts:22
Joined:Mon Oct 31, 2016 4:39 am

Re: CGT

Postby MazzaMc » Sun Jul 16, 2017 11:33 am

Thank you so much for taking the time to answer my posts. Such good news on the SDLT, can now get on with planning our next home.

I've read that I can reduce the CGT by offsetting some of the refurb costs (those which have made a permanent change that have raised the value of the property), estate agent fees and conveyancing costs. I assume new double glazed windows would be included?
What proof do I need of these refurb costs? Does it have to be a VAT invoice? Been looking through old receipts and having trouble finding some and doubt I can contact the tradesmen to get copies.

Thanks again for any advice.


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