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Where Taxpayers and Advisers Meet

Engaged couple each owning own home

Stephen T.
Posts:1
Joined:Wed Aug 06, 2008 3:03 pm

Postby Stephen T. » Fri Jul 04, 2003 7:24 am

Two individuals each own property. What is the CGT position if they wish to sell one or both properties before or after their marriage ?

Ian McTernan CTA
Posts:1232
Joined:Wed Aug 06, 2008 3:02 pm
Location:Bedford
Contact:

Postby Ian McTernan CTA » Fri Jul 04, 2003 7:30 am

Presumably currently living one in each house?

If so, then before marriage, each has own principal private residence and PPR relief available on both.

After marriage, a married couple can only have one PPR, so you have to elect which one within two years of the marriage- usually this is the one you decide to live in together. PPR will still be available on the other property, but if the other property is held for a number of years then the value of this relief will gradually decline and some CGT will become payable.

The three year rule would also apply.

Let me know if you need more details going forward or want some figures worked through.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com


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