22 October 2012
Neither house is let
Married date was 22 Oct. 2012
Hi again.As of now, the law says that you have 36 months to sell a property which was previously your main home since you bought it without having to pay Capital Gains Tax.From 6 April 2014, the exemption for the last 36 months of ownership will be reduced to a period of 18 months. The 36 month window will expire prematurely in your case on April 2014 so if you sell (exchange contracts by 5 April 2014) one of the properties by then, there will be no CGT to pay. If you sell one of the properties after 5 April 2014, the gain for the period it was lived in by one of you will be exempt as will the gain for the last 18 months of ownership. So, in effect, the gain for each month of ownership after 21 March 2014 will be a taxable gain.Take a look at HS283 for more information on CGT and the main home. I hope thiis helps but let me know if you have any further questions.
Sorry our marriage date was 22 OCT 2011
In that case, for a disposal after 5 April 2014, your 18 month window expired on 21 April 2013. The date in my previous post should have been 21 April 2014, not 21 March 2013. If you can exchange contracts to sell by 5 April 2014, all the gain will be exempt.If you sold one of the properties after 5 April 2014, about 13 months worth of the gain would be taxable with the first £11,000 being covered by the annual CGT exmeption for each part owner.