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bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I am married and I have owned a house in my own right which

Customer Question

I am married and I have owned a house in my own right which we live in - it is solely in my name. My wife has just bought a property for her to live in as her job takes her away from the house she shares with me. Is she liable for CGT on this house? She has never owned a property before?
Thank you
David
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question. Husband and wife are separate persons in UK tax law although there are overlaps which do not concern us in this situation.

Your house is your sole or main domestic residence which you occupy so Private Residence Relief applies and relieves you of 100% of any capital gain on disposal.

Your wife's new house is her sole or main domestic residence which she occupies so the same relief apples to her.

The whole ball game changes of course if one starts letting out properties, but that is clearly not the case here so outside the scope of this question.

I do hope I have put your mind at rest on this matter.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3816
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 3 years ago.
Thank you very much - very helpful.
Expert:  bigduckontax replied 3 years ago.
Pleased to be of assistance.

Please be so kind as to rate me before you leave the site.
Expert:  bigduckontax replied 3 years ago.
Thank you for your support
Expert:  Sam replied 3 years ago.

Hi

 

My name is XXXXX XXXXX I am another of the UK tax experts here on Just Answer

 

Please note that married couples can only have one main residence between them - so you cannot attract a right to private residence relief on both properties.

 

 

See link here the helpsheet for private residence relief and scroll to Page 3 and read under the heading Only and Main Residence -

http://www.hmrc.gov.uk/helpsheets/hs283.pdf

 

you can then see further into this section it clearly states If you are married or in a civil partnership and you are not separated from your spouse or civil partner, you can have only one main residence between you.

 

Of course there are elections that can be made to elect another property within a 2 year period of purchase, but this still only considers one property at any one time.

 

 

Do feel free to ask any follow up questions, and if you wish to me answer, just indicate as such

 

Thanks

 

Sam

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