Private Residence Relief

[coxy]

I have been looking at HMRC's Guidance, HS281 --- "What counts as living together" etc

So-- if a couple are not estranged yet live apart in different homes they are still treated for CGT as "living together"!

The couple, if NOT living apart, would already be restricted to a single "main residence" for CGT relief. Are they likewise restricted even if, as here, they are "living apart together" (LAT)?

Thanks.

[maths]

It means:

the couple are separated under a court order; or
separated by deed of separation;or
separated in fact in circumstances in which separation is likely to be permanent.

[coxy]

But none of those apply!

Merely apart - no marital breakdown at all. NOT estranged and no permanence assumed. So should be treated as LATs, apart but together, for CG

[coxy]

PS

And it seems to me if the LAT couple are not entitled to two Main residences, one for each, then they should have full PR relief for their one Main res for the whole time they are LATs in their different homes.

[bd6759]

A married couple can only have one PPR, just like a single person can only have one PPR.

If they live in different houses, one will need to be the PPR.

[maths]

If the couple are married and, you say, are living together within the definition I provided then as a married couple living together they are only entitle to one main or sole residence.

If as it seems they have two residences then they need to make a joint election as to which is their main residence other wise HMRC decide the matter on the facts.

The election must be made within 2 years of the acquisition of a second residence.

[etf]

Expanding on this theme further:

H & W have been non-UK resident for a number of years living in rented accommodation overseas. They acquire their first home in the UK on 6 April 2018 and W immediately returns to the UK and lives in the property throughout the 5 years they own the property. A joint PPR election is lodged in favour of the UK property. H returns to the UK permanently on 6 April 2020 and lives in the property throughout the following 3 years.

W clearly qualifies for full PPR relief as she has occupied the property as her main residence throughout the period it was owned. What PPR relief will H be entitled to claim assuming he only occupied the UK home during his 4 weeks of annual leave during 2018/19 and 2019/20?

[coxy]

Thanks.

I am part of the NON- estranged couple! London and northern residences ; we have lived jointly in London and, at times though always seperately, in each place.

No election has been made so I agree that HMRC could decide on the facts. However my wife sold a third property, a flat that has always been empty, last year --which would allow us to make the joint election by next April 2019

Not sure!? The "facts" may anyway support the London home as the main one. Our son and my mother in law have shared the London home (only) and I have been a carer for some years while for the latter while my wife was in the north.

[coxy]

Expanding on this theme further:

H & W have been non-UK resident for a number of years living in rented accommodation overseas. They acquire their first home in the UK on 6 April 2018 and W immediately returns to the UK and lives in the property throughout the 5 years they own the property. A joint PPR election is lodged in favour of the UK property. H returns to the UK permanently on 6 April 2020 and lives in the property throughout the following 3 years.

W clearly qualifies for full PPR relief as she has occupied the property as her main residence throughout the period it was owned. What PPR relief will H be entitled to claim assuming he only occupied the UK home during his 4 weeks of annual leave during 2018/19 and 2019/20?

Surely as a couple the property is their only main home? Regarded as living together even if apart.

[coxy]

PS
In which case they jointly share the full PPR - even if he never comes back at all?