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Where Taxpayers and Advisers Meet

Once main residence, now married, and let. Do we need to pay CGT?

Firestarter
Posts:4
Joined:Wed Aug 06, 2008 3:05 pm

Postby Firestarter » Wed Aug 27, 2003 6:50 am

My wife purchased a flat before we were married, in August 2000, where she lived as her sole residence until January 2002. The property has since been let out from February 2002 until present. My concern is that since we married in November 2002, does this have an effect on the Capital Gains Tax situation that my wife will find herself in in the event of selling the property, as I understand that a married couple can only have one main residency, or does the fact that she was single when se purchased the property and moved from the property mean that she will still be exempt from CGT for 36 months from when she moved out?

Ian McTernan CTA
Posts:1232
Joined:Wed Aug 06, 2008 3:02 pm
Location:Bedford
Contact:

Postby Ian McTernan CTA » Wed Aug 27, 2003 9:23 am

36 months from when she moved out, as she moved out before marriage. This is not the only consideration, as she may also qualify for the letting exemption, has a personal allowance, taper relief may apply in due course, so no CGT may be payable for quite a while after the 36 months has expired.

Ian McTernan CTA
Chartered Tax Adviser
McTernan Associates Ltd
ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com


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