Newly married - minimising CGT on property

cous-cous

I have recently got married. My wife and I both own our own properties which we have owned for 4 years. They have been our respective primary residences and each has risen by about £100k in value. I have rented out a couple of rooms in my flat - but always lived there myself as well.

Now that we are married we want to buy a house together. We were thinking of selling one of the flats (I assume this will attract zero CGT) and renting out the other. Is this wise though? Shouldn't we sell both flats now and take advantage of the zero CGT on each flat? We can then start afresh with the proceeds. Otherwise, when I come to sell the rental flat (assuming I keep it for more than another 3 yrs) my current £100k gain (plus whatever future gain) will attract CGT at the full 40%?

Dumbledore55

Hi

You don't have to pay CGT on either house for 3 years if it was previously your primary residence and only then on any increase in value from that date, not the date you moved out or the value you originally bought it at.

Your original 100K gain and any gain for 3 years from moving out is safe - have it valued at that date and then you only pay CGT on any future profit.