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Where Taxpayers and Advisers Meet

CGT on main home

greenjersey
Posts:22
Joined:Thu Nov 17, 2011 8:01 pm
CGT on main home

Postby greenjersey » Mon Apr 17, 2017 10:06 am

Hi, A family member lets a "granny" annexe at her home on a rent a room basis. If she moved into this and let the main dwelling would she remain entitled to the main home exemption for CGT on the whole property? In relation to Income Tax I presume that she could,'t continue with the Rent A Room tax arrangement but is that right?
Thanks for any advice.

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: CGT on main home

Postby Peter D » Mon Apr 17, 2017 10:46 am

Is the annexe registered as a separate property with it's own front door and council tax. Regards Peter

greenjersey
Posts:22
Joined:Thu Nov 17, 2011 8:01 pm

Re: CGT on main home

Postby greenjersey » Mon Apr 17, 2017 9:45 pm

No, it was a condition of planning permission when the house was extended that the annexe must not have a separate entrance and it is not "rated" as a separate dwelling. The tenant who currently occupies it doesn't pay any utility bills.

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

Re: CGT on main home

Postby maths » Sun Apr 23, 2017 11:58 am

A dwelling house (for CGT purposes) may extend to include other buildings if those other buildings are "appurtenant to and within the curtilage of the main house" commonly referred to as the curtilage test (as opposed to the previous entity test).

However, in your case it appears that there is in fact only one building of which the granny annex is a part. Either the one property qualifies for private residence relief or it doesn't.

Rent a room relief will not be available if she lived in just the granny annex and she then rented out the whole of the rest of the property.


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