Getting Married CGT Advice

Stevo123

Dear All,

I'm getting married soon and wanted to get some good advice and knowledge from people in the know.

We both currently live separately, and have one house up for sale in order to move in together. The house has been on the market for a year now and as the wedding day gets closer we are unsure about the implications of Capital Gains Tax.

If we live one house from our wedding, when the other house EVENTUALLY sell are we liable for CGT?. We don't want to rent it just get rid of it and move forward together.

My wife to be bought the house in 2007, and is still her main residence.

Thanking you in anticipation

Fire_Fox

You are not liable for capital gains tax on your main residence, even if you happen to have moved out. In any case, is your wife actually going to make a profit on a house she bought at the peak of the market?? CGT is explained in detail on the inland revenue website.

Stevo123

Thanks Fire Fox,

The property will be sold at a loss for sure, does that mean it is automatically exempt?

I've been on the Inland Revenue site and read through lots of stuff, but wanted an english speaking answer. Most other internet comments are about moving out and then letting the property which we don't want to do.

silvercar

capital gains tax is only payable if you make a gain.

Even if you did make a gain there are reliefs available if the property was your home. In particular, you are exempt for the time it was your home and the last 3 years of ownership.

00ec25

as above CGT will only be payable if there is a gain

from the point that it ceases to be your fiancee's main home (ie because she has moved in with you and you are then living togther as man and wife in another property, which means the other property is now classed as her main home) she has 36 months in which to sell it and she will automatically be exempt from CGT

if she has not sold it after 36 months, then she will only be laible to CGT if it has made a gain which is larger than her (then) annual personal CGT exemption amount. This is currently £10,100, ie you can make a gain of £10,100 and still not pay CGT (this assumes the property is in her name only)

so even if she makes a gain on the 2007 purchase price, she may still not have a pay any CGT anyway