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Where Taxpayers and Advisers Meet

stamp duty proof for main home etc

Bwang
Posts:1
Joined:Sun Feb 14, 2021 4:43 pm
stamp duty proof for main home etc

Postby Bwang » Sun Feb 14, 2021 4:47 pm

My partner is buying a home in the UK but owns 2 properties abroad which she now lets out.

She previously lived in both properties (until July 2018) so if she sold it now then she would avoid the higher rate of stamp duty.

However, what would she need to prove that she lived there?

Here's the tricky bit:

She lived between the two properties so it is difficult to decide which one she needs to sell. It would be better to avoid needing to sell both.

In property A, she was using it as accommodation while a university student but would often go home at weekends.

In property B, this was her family home that her father also lives in. Her residence ID was always registered to her family home (property B) as were many postal correspondences such as her health insurance.

But she spent most of her time in property A.

We would also want to claim capital gains relief for the time she lived there and was not letting it out. If she was living with her father in property B would this potentially disqualify it from any relief since her father might be considered as a 'tenant'? There is no contract and he pays no rent.

Thanks for reading.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: stamp duty proof for main home etc

Postby maths » Mon Feb 15, 2021 10:22 pm

From the very limited facts I would be inclined for UK CGT purposes to argue property B was the main residence.

Strictly speaking if both A and B qualify as residences for UK CGT then within 2 years of acquiring the later of A and B an election should have been lodged with HMRC selecting which of A and B you wanted to elect as you main residence.

It is I suspect arguable that B was only a temporary residence whilst attending uni' and that there was no serious intention to treat B as your home.

The fact father also lived/lives there is not problematic.

I assume you own each of A and B 100%.


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