CGT liability?

[Nick245]

Following our marriage 18 months ago, my wife's flat has been essentially vacant whilst we have tried to sell it - various issues relating to the freeholder and managing agent have cost us considerable delays, stress and money, but we are finally there and due to complete imminently. Immediately before this 18 month period, it had been her sole and main residence for the prior 15 months (dating back to when she acquired the property). It has never been rented or used for anything other than as her PPR.

My question is simply: does her absence from the flat during the time it's been on the market, when she has been living with me in my PPR (acquired in my sole name before we were together), have any impact on the final (18 month) period exemption?

From everything I've read, I feel confident that the full period (15 month as PPR when living in the flat, plus 18 month sale period when vacant) qualify for CGT relief, irrespective of her residency situation and our marriage during the last 18 months, because of this rule... But would be very grateful if someone more versed in these matters could confirm!

Finally, assuming the entire period does qualify, do any tax filings need to be completed to formalise the situation?

Many thanks in advance

[maths]

A married couple are only entitled to one sole or main residence for private relief purposes for CGT. Following your marriage this appears to be your property in which you both live.

As your wife originally pre marriage lived in her flat then the last 18 months of ownership will automatically qualify for CGT relief purposes.

Basically no CGT charge should arise on her sale and there is no need to report in her Tax Return.

If for whatever reason the sale does not take place within 18 months of her moving out then technically there may be a small CGT charge but this would probably be covered by her £11,100 annual exempt amount.

[Nick245]

Thanks maths

[Ian McTernan CTA]

If your wife already completes a self assessment then it might be worthwhile including the sale on the CGT pages and including a calculation and explanation in the white space on the Return if the total period exceeds the 18mths, just to prevent HMRC asking questions later down the line.

Agree, not necessary, but might be an idea.

Also, take a closer look at that period of 'residence'. Did you really only start living together after you were married, or did you change voting registration, council tax bills, etc before then?