Hi.Can you tell me if you are actually separated and, if so, when you separated please. Have you lived in the property you have owned for the whole 17 year period?Has either of the properties been let?
No we have not separated, we are happily married, I spend time maintaining both properties and we spend all of our holidays there,
I registered to live there about 3 years ago. Neither properties has ever been let.
I have replied to your request, do you need anymore information?
The property which we have owned for 17 years is in Dorset, the property we have owned 40 years is in Surrey. We decided to spend more time there as my only daughter moved nearby in Dorset 9 years ago and help with their 2 children, now she works, we spend our holidays in the Dorset house. We spend our time: in 2 weeks in Surrey and 2 weeks in Dorset, my wife does not want to move away!
Thank you for your help, if we exchanged our house with my daughter's and exchanged deeds would we pay capital gains?
I'm afraid that an exchange of properties would be disposals for CGT purposes at the open market value since you and your daughter are connected for tax purposes. Whether there would be a taxable gain on each of you would depend on eligibility for claims for main residence relief. If your daughter's house has been her main home for the whole period of ownership, then her gain would be covered by main residence relief and so there would be no CGT to pay.A tax neutral swap can only be done with jointly owned assets as you can read here.
Thank you, you have been very quick and helpful, looks like we will have to cough up some money if we sell, maybe we might rent to get some money for maintenance of the Dorset residence?