Query on CGT

[ashp89]

Hi,

I just want to explain my situation and then I want to ask questions:

1) I bought my very first house in Ipswich in August 2001. In March 2002 I lost my job. Remained jobless for 2 months, so stayed in the house with my wife who was working.

2) In June 2002, I got job in Manchester. I moved to Manchester in June 2002 while my wife lived in the first(my house) house until October 2002.

3)My wife bought her 2 bedroom house in Manchester in August 2002, left her job in October 2002 and moved to Manchester. She remained jobless until December 2002, stayed at home in Manchester. I was living in her house.

4)I did not have time to arrange for selling my house. So I rented it in consent with my Mortgage lender. They allowed me to rent it until Sep 2005.
It is still on rent.

5)My wife got her new job in outskirts of Manchester. She wanted to move in bigger 3 bedroom house. So she bought her 2nd house in September 2003 close to her office and rented her 1st house with consent with her mortgage lender for another 3 years.

6) Now we are living in my wife's 2nd 3 bed house.

My query is :

1) If I sell my 1st house in Ipswich by September 2005, will I have to pay CGT ?

2) If my Wife sells her 2 bedroom house in Manchester in next 1 year, will she have to pay CGT on her 1st house ?

3) what would be the best way to sell our properties where we are not living at the moment ?

I request the experts to advise me the best possible way to sell off.

Also in case of any CGT, will it be 40% or will it be 22%. Is it(CGT) dependent on our PAYE salary (P60) ?

Thanks very much in advance for your help.

Regards

Ash

[Ian McTernan CTA]

Ash,

Your question is a complicated one as husband and wife can only have one PPR between them at one time.

Too complicated to deal with here, would be happy to advise on a professional basis. Contact me if you wish me to take a look at on that basis.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com

[ashp89]

Ian,

I will get in touch with you on professional advise because I would need you when I sell one of the properties.

In short my query is : ( Considering that Husband and Wife Count as one together
for tax purposes)

a) We(Me/my wife) bought a house A in August 2001. Stayed there for 1 year. Then We rented out House A from November 2002.

b) We bought House B in September 2002 and lived there for 1 year.

d)In October 2003, we bought another house C and put our house B on rent.

If I/We wanted to sell House A in this financial year(2004) and then sell House B one year later in 2005, Would I/We be liable for any CGT because I have lived in both houses for 1 year and then rented them out for another 36 Months?