Hi
My husband and I owed and lived in property 1 for 10 years before buying and moving to property 2. Property 1 was let out when we moved to property 1 and a declaration of trust and form 17 filed with HMRC allocating 1% to me and 99% to my husband. We have paid income tax for about 5 years on that basis. We are now considering selling property 1 (late 2020).
I have noted that letting relief is no longer to apply from April 2020 and that the 18 month automatic period added to the end of PRR is to be reduced to 9 months from this date also.
We are considering transferring property 1 back to more equal shares before the sale primarily this enabling us to both use our capital gain tax allowances. I understand this is acceptable?
However, I am unsure as to how we would apply the PRR and calculate the gain bearing in mind the fact that whilst we have both owned property 1 (legally and beneficially) during the entire period, the percentage share has changed. For example, if I am transferred back say 49% (so I own 50%) do I use that percentage to work out the gain? I was deemed to own 50% when we bought property 1 and I will own 50 % when we sell property 1? Of course I have not owned 50% for the entire period. Likewise, do I currently (Pre April 2020) qualify for the PRR and the Lettings Relief having only owned 1% for most of the letting period (and if so on what gain)?
Any guidance gratefully received!
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch