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Where Taxpayers and Advisers Meet

Second House Unmarried CGT

shawn_phade@yahoo.co
Posts: 39
Joined: Wed Aug 06, 2008 3:05 pm

Postby shawn_phade@yahoo.co » Tue Jun 05, 2007 5:33 am

Hello

I own/live in a house with my unmarried partner as a Joint Tennant.

The house two doors away is up for sale and I am thinking of buying it under my name only and move in as my PPR. The existing house will remain my unmarried partners PPR.

Will this create a CGT liability when/if the first house is sold or as it remains my unmarried partners main residence will it all be exempt if sold?

Thanks.

Lee Young
Posts: 2667
Joined: Wed Aug 06, 2008 3:26 pm
Contact:

Postby Lee Young » Tue Jun 05, 2007 5:56 am

For your partner's half the sale of the first house will escape CGT if your partner lives there for the entire time it is owned.

For you, if it were sold more that three years after you leave it, your half may be subject to some CGT, but would depend on the figures.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701

adi36
Posts: 477
Joined: Wed Aug 06, 2008 3:23 pm

Postby adi36 » Tue Jun 05, 2007 5:57 am

Hi
When you move out it will cease to be your main residence and you will be potentially liable to CGT on 50% of any gain arising on disposal. Of course you will only be liable for the period of non residence less the PPR exemption (last 36 months) and annual exemption currently £9200.
Your partner will not be liable if it remains her PPR.
Regards Adrian S

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Postby Peter D » Tue Jun 05, 2007 7:36 am

Are you relly going to move out and live apart or is this just a CGT avoidance issue. What are you going to do with the property you leave. Regards Peter

al_eebee
Posts: 899
Joined: Wed Aug 06, 2008 3:40 pm

Postby al_eebee » Tue Jun 05, 2007 8:54 am

Depending on your answer to Peters last in "What are you going to do with the property you leave" there might be scope to cover the first property by a nomination that would not be available to a married couple / civil partners

shawn_phade@yahoo.co
Posts: 39
Joined: Wed Aug 06, 2008 3:05 pm

Postby shawn_phade@yahoo.co » Tue Jun 05, 2007 10:39 am

It seems silly to have joint tenancy for unmarried couples in this case. If Tenant in Common it could just be in your will to leave your share to the other person if something happened then you could split it as you want couldn't you 99%/1%?

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Postby Peter D » Tue Jun 05, 2007 10:42 am

Where are the two of you going to live. What are you going to do with the seond property. Regards Peter


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