A married couple living in and co-owning a property (mortgage 90% paid off) decide to part. They have owned a 2nd property (part-mortgage) for a couple of years which has been rented out.
They decide to separate and the husband will move into that property when it becomes available at end of lease so it would effectively then become his main residence. Up until that point income tax has been paid on rental income per rules, stamp duty was paid at the higher 2nd home rate on purchase.
With settlement the wife will take on the current primary residence alone and the husband will take on the 2nd home alone.
I have a few questions:
Would there be a CGT bill on the increase in value of the 2nd home for either party when the husband moves in or at a future date ?
Would there be any kind of refund possible on the stamp duty paid at (what was) 2nd home rate?
Any other tax implications that spring to mind ? - This is a hypothetical situation, I'd also be interested to know if there would be any difference if the 2nd home was originally purchased (with part mortgage) solely by the husband (as opposed to joint). I'm aware that there is 2xCGT relief if purchased by both..
Thanks in advance...
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