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bigduckontax
bigduckontax, Accountant
Category: Tax
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Madam , My wife & I sold our house in the UK (Joint owned)

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Dear Sir /Madam , My wife & I sold our house in the UK (Joint owned) in December 2015. I have been working in Switzerland & have commuting back & forth since 2013 , my wife & daughter have lived 100% in the UK in the House up until it sold... is this subject to capital gains tax?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

If your UK house was your sole of main domestic residence then, although you are liable to Capital Gains tax (CGT) on any gain made on disposal, you are entitled to Private Residence Relief (PRR). PRR relieves CGT at 100%. PRR is given automatically and there is no requirement to declare the gain on your annual self assessment tax return if you make one.

I do hope that I have been able to set your mind at rest on this matter.

Customer: replied 1 year ago.
Hi Keith , I did( still have) have a rented residence in Switzerland and travelled back 90 days max per tax year to the UK , my wife( joint owner) and daughter stayed 100% in the UK in the house. does this make any difference?
Expert:  bigduckontax replied 1 year ago.

Not the slightest, the law on this matter is quite specific 'your sole or main domestic residence.' Note the word 'or' not 'and'. HMRC would love it to be 'and' and like to interpret it as 'and' in disputes, but it is not. You are disposing of your sole or main domestic residence so PRR applies. That you rent accommodation in Switzerland matters not one jot.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thanks.
Expert:  bigduckontax replied 1 year ago.

Thank you for your excellent support.

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