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Where Taxpayers and Advisers Meet

CGT

MazzaMc
Posts:22
Joined:Mon Oct 31, 2016 4:39 am
Re: CGT

Postby MazzaMc » Sat Jun 02, 2018 10:26 am

We ended up selling our joint home last September and have been living in my wife's home since. We've now seen another home and are in the process of buying it but her buyer has dropped out! I assume if we don't want to lose the house we'll have to pay the additional 3% SDLT surcharge. I've read that we've got 3 years to try and sell the bungalow to reclaim the 3% surcharge but didn't know if there was any way around this? Was also concerned that as she partly owned the other home they might not repay the surcharge. Any advice would be greatly appreciated.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: CGT

Postby AGoodman » Wed Jun 20, 2018 8:44 pm

Yes, and claim the last 18 months of ownership for PPR automatically but:

(A) this is subject to the trading point above - ie what motivated the decision to sell once the renovations were complete?

(B) HMRC could question the substance of your occupation if you only live there a short time and intend to move out at the time you move in. I forget the exact terminology used. Be sure to move all your accounts etc to the new address and move in properly.

You should consider transferring it into joint names to get two annual exemptions on sale. May not work so well if there is still a meaningful gain and you are a higher rate taxpayer.

MazzaMc
Posts:22
Joined:Mon Oct 31, 2016 4:39 am

Re: CGT

Postby MazzaMc » Mon Jul 16, 2018 6:42 pm

The renovations were completed 2 years ago and we have moved in fully. Registered at doctors, all bank accounts, driving licence etc changed to this address.

Someone else suggested doing a deed of trust rather than having the expense of transferring it into joint names.

Neither of us are higher rate tax payers.


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