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Where Taxpayers and Advisers Meet

2 Homes and impact of Capital Gains Tax

williap
Posts:1
Joined:Wed Aug 06, 2008 3:05 pm

Postby williap » Thu Sep 18, 2003 1:44 am

My husband and I currently have a house which we have no mortgage on, this house is in Joint Names and is our main residence. We are in the process of having another house built which we plan to move to when we retire, i.e. 5 to 10 years time. The new house will be solely in my name as the mortgage will be in my name. We will not be letting out either house, but will use the new build for weekends until retirement.
Can we transfer our current main residence to my husband, and would this mean that when we do sell the current house that we do not have to pay Capital Gains Tax.

Nigel Lord
Posts:518
Joined:Wed Aug 06, 2008 2:18 pm

Postby Nigel Lord » Fri Sep 19, 2003 1:22 am

williap

Unfortunately, married couples are only entitled to one main residence between them.

As both houses will be available to you as main residences, you may make a Principal Private Residence (PPR) election in respect of either of them. As your existing home already qualifies for PPR Relief for the period of residence and for the last 36 months of ownership, it is likely that the optimum election would be in respect of the second property (however, this depends on the relative values and anticipated gains on the properties). The election must be made within 2 years of the second property first becoming available to you.

If you would like advice on making the optimum election, please refer to me.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk


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