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Where Taxpayers and Advisers Meet

named property- capital gains tax

David00
Posts:3
Joined:Sun Oct 11, 2020 9:30 pm
named property- capital gains tax

Postby David00 » Sun Oct 11, 2020 9:37 pm

I don’t think this particular wrinkle has been covered but apologies if it has. Please direct me to correct place as I could not find an answer.
My wife and I separated 4 1/2 years ago and her and the children are still living in the property whilst they are at school. I am renting somewhere but have not bought another property since. We lived in the property together for 10 years + since 2000.
We jointly own somewhere else that has always been rented out since purchase. When it comes to selling the main property - in the next three year or so - will that automatically still count as my main property and be free of capital gains or do I have to legally name it as so so do something legal to cover myself? Thanks so much.

Samson22
Posts:58
Joined:Mon Aug 17, 2020 10:54 am

Re: named property- capital gains tax

Postby Samson22 » Mon Oct 12, 2020 8:55 am

I am no expert so wait for them. However I think any capital gain since splitting is taxable but any capital gain for the 10+ years and since 2000 is exempt. But like I said wait for the experts

David00
Posts:3
Joined:Sun Oct 11, 2020 9:30 pm

Re: named property- capital gains tax

Postby David00 » Mon Oct 12, 2020 9:50 am

Thanks fir info but I have heard that if the property is still your main property and you are now renting that that remans my main property for tax purposes and so is capital gains tax free. Thats what Im hoping!

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am

Re: named property- capital gains tax

Postby someone » Mon Oct 12, 2020 10:35 am

Thanks fir info but I have heard that if the property is still your main property and you are now renting that that remans my main property for tax purposes and so is capital gains tax free. Thats what Im hoping!
I think there are special rules around divorce, but absent them, it would have to be a residence in order for you to nominate it as your main residence. Unless you actually live there some of the time (I'm assuming you've permanently moved out) you cannot nominate it as your main residence and if it is a residence (and you continue to own a share) then you don't need to make an election as rented accommodation no longer thwarts the ability to claim PPR on a residence you own.

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

Re: named property- capital gains tax

Postby maths » Mon Oct 12, 2020 1:12 pm

On a sale your CGT liability will be computed as normal and therefore for the period (other than the last 9 months) during which the martial home was not your main/sole residence any capital gains attributable to that period will be subject to CGT.

There is potential relief from such a charge but this requires that you transfer your interest to your spouse pursuant to an agreement/court order with respect to the separation/divorce.

David00
Posts:3
Joined:Sun Oct 11, 2020 9:30 pm

Re: named property- capital gains tax

Postby David00 » Mon Oct 12, 2020 1:49 pm

Thanks for the replies and help.


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