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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5022
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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If my wifes parents have lived in the house that my wife and

Customer Question

if my wifes parents have lived in the house that my wife and I own and have never paid rent is there a tax liability when we sell.
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.Please advise if your wife's parents have lived in the property from day one ..i.e. March 1988. Many thanks
Customer: replied 2 years ago.

Yes but due to age we have had to take them in ourselfs.

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.As the property was occupied by your wife's parents prior to 6 Apr 1988, then private residence relief would be available for the period it remained their main residence.You would also be able to claim relief for the final period of ownership (18 months).Any period outside of the above would be deemed chargeable to CGT.If the property is in your joint names, then you would be entitled to 2 lots of annual exempt allowance (£11,100 each).More information on this can be found herehttp://www.hmrc.gov.uk/manuals/cgmanual/cg65671.htmI hope this is helpful and answers your question.If you have any other questions,please ask me before you rate my service – I’ll be happy to respond.