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Where Taxpayers and Advisers Meet

Capital Gains on property on separation

Yiannis17
Posts:105
Joined:Wed Aug 06, 2008 3:43 pm
Capital Gains on property on separation

Postby Yiannis17 » Tue Dec 21, 2021 10:18 am

Morning

I have a couple who separated in March 2021 and one of the partners moved out of the family home. On preparing the capital gains tax computation on a sale of the property in Feb 2022, even though the property is still held jointly will the 9 months PPR apply to one of the partners? Or as there has yet to be a transfer and as one of the partners is still living there will it be a straight CGT with an exempt portion as the property was let for a few years many years back?

Thank you

AGoodman
Posts:1416
Joined:Fri May 16, 2014 3:47 pm

Re: Capital Gains on property on separation

Postby AGoodman » Tue Dec 21, 2021 11:59 am

The one that moved out will lose their PPR from the date they moved out BUT will still be able to claim for the last 9 months. On that basis they would only have lost about 2 months which is likely to be covered by the annual exemption (assuming it isn't used up by the period they let the property).

maths
Posts:8429
Joined:Wed Aug 06, 2008 3:25 pm

Re: Capital Gains on property on separation

Postby maths » Tue Dec 21, 2021 7:33 pm

There is no exemption for any period of letting.


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