Thank you for your question...
Please clarify for me..
You say you lived in the Bucks property for the first 10 years and during that time you also owned a second home in London. For CGT purposes, the London property was nominated as your main residence. Was there any period when the Bucks property was your main residence?
The second part of your question related to CGT on selling the property to your nephew.. would you own any share in the property or will it be 100% in his name?
Thank you for your reply..
Provided the property in Bucks was your main residence at some point during the period of ownership, you could claim
- private residence relief for period covered as main residence
- final 18 months of ownership
- letting relief for the period property let (maximum relief is £40,000)
The above reliefs are covered in HS283 here
Purchase of property.. if you were to sell half share in your property, then you are deferring CGT on that part you retain and only pay CGT on the gain arising from sale of share to your nephew..
If you were to buy another property with your name on the deed, then it would be deemed second home and liable to second stamp duty.
You may wish to consider first option.
I hope this is helpful and answers your question.
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You can only have one main residence at any one time.
In the absence of a nomination, the main residence is determined by facts e.g.
what was your address on your bank statements, HMRC correspondence, Council tax bills, where was your GP, entry in electoral register, where did you spend more time.
You stated ealier, you sold your London property ..did you claim private residence relief against capital gain when you sold that property.. if yes, then you can't claim relief for the same period against Bucks property.
I hope this is helpful.
You state you resided in London property for 1-2 years as your only property and Bucks property was bought in 1986.
Based on information provided, you could claim PPR for Buck property for the period it was your main residence as mentioned in my posting of 15/07/2016.
Private residence relief is available against CGT for residential property that has been your only and main residence during period of ownership. If the residence was for all period of onership then you get 100% relief. Otherwise it covers the period the property was your main residence. As an example, you live in a property for 10 out of 20 years of ownership then private residence relief is available for 10 years plus final 18 months of ownership (138/240 months).
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