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Where Taxpayers and Advisers Meet

CGT implications of family member staying in grandfathers house for sale house for

tax-bill
Posts:88
Joined:Mon Sep 14, 2009 12:22 pm
CGT implications of family member staying in grandfathers house for sale house for

Postby tax-bill » Mon Apr 05, 2021 12:53 pm

My client owned his main residence since 2013 until putting it up for sale when he moved into his current home in 2019. There is still no sign of an imminent sale and he had been wondering about letting his grandson stay in it for a spell and then put it back on the market later on. However, he doesn't want it to be considered a commercial arrangement as he has been told that might put a subsequent sale into a capital gains situation. Is this correct and also I am wondering if there is any established arrangement with HMRC for treating a family member occupying property in this situation?
Hope someone can help.

AGoodman
Posts:1205
Joined:Fri May 16, 2014 3:47 pm

Re: CGT implications of family member staying in grandfathers house for sale house for

Postby AGoodman » Tue Apr 06, 2021 4:57 pm

The way you describe it, the 2013 property is no longer his main residence anyway. Is it?

I don't think it makes any difference whether there is another family member living there or not, although it cannot be the owner's main residence if he has granted a tenancy of the whole property to somebody else (whether family or not).


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