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Where Taxpayers and Advisers Meet

Main residence during divorce and CGT

meaty
Posts:2
Joined:Sun Apr 28, 2024 6:34 pm
Main residence during divorce and CGT

Postby meaty » Sun Apr 28, 2024 6:49 pm

Hello I have filed for divorce and we have a 2nd buy to let property. It is 2 bedroom, rented out to a single person and I have just moved in there into the second bedroom. Both properties are jointly owned. I want to sell it and buy a place closer to the marital home. Can the 2nd home be classifed as my main residence to avoid CGT? If so would i need to live there a minumum amount of time and what evidence would be needed?

pawncob
Posts:5115
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Main residence during divorce and CGT

Postby pawncob » Tue Apr 30, 2024 12:07 pm

The gain would be time apportioned, so temporary residence wouldn't make much difference.
With a pinch of salt take what I say, but don't exceed your RDA

bd6759
Posts:4313
Joined:Sat Feb 01, 2014 3:26 pm

Re: Main residence during divorce and CGT

Postby bd6759 » Tue Apr 30, 2024 2:23 pm

More importantly, temporary occupation wouldn’t make it a residence.

meaty
Posts:2
Joined:Sun Apr 28, 2024 6:34 pm

Re: Main residence during divorce and CGT

Postby meaty » Tue Apr 30, 2024 4:01 pm

Thanks. We have owned and rented it out for 10 years, does that mean I would need to live there 10 years myself in order to pay no CGT?

pawncob
Posts:5115
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Main residence during divorce and CGT

Postby pawncob » Tue Apr 30, 2024 4:27 pm

Depends on the figures involved. Living there for ten years would halve the potential CGT.
With a pinch of salt take what I say, but don't exceed your RDA


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