Capital Gains Tax

Empty_pockets

Unmarried, in a relationship.

Thanks.

jimmo

When you buy and move into the new property you will have 2 residences (places where you live) One of them, the place where you currently live will be wholly owned by you. The other, the new property, you will own a half share of.
You will then be able to elect which of your residences are to be taken as your main residence.
http://www.hmrc.gov.uk/manuals/cgmanual/CG64495.htm
For the time being there’s no rush, you will have 2 years to make up your mind.
I am no tax planner but it would probably make sense for you to ensure that the new property is elected as your main home even for only a month or two because that will trigger relief for the final 3 years of ownership.
When you buy and move into the new property your OH will have 2 residences (places where she lives). One, your current home, she will have no financial interest in. The second, the new property, she will own a half share in.
It is vitally important for both you and she to recognise that the moment she moves out of her current home, which she owns that will cease to be her residence.
So, as she will have 2 residences but only have a financial interest in one of them I do not believe that she needs to make an election but, for peace of mind, it would probably be a good idea for her to do so and nominate the new property.
When she eventually sells her original property your OH will get relief for her period of occupation, the final 3 years of ownership and lettings relief.
The details are all here.
http://www.hmrc.gov.uk/helpsheets/hs283.pdf