Owning 2 houses

costingbunny_2

Can someone please advise on any CGT issues in this scenario
My partner has a house in his name he rents out having previously lived in it for 10yrs. We own another house we have lived infor2 yrs and which is being transferred into his sole name (personal reasons) we intend to sell this house soon. Are we ok 're CGT. My understanding is we are fine as its our main home _ thoughts?Ta

G_M

Your main home is exempt from CGT.

A 2nd home is not. Where are 2nd home used to be the main home, there are complex rules depending on how long ago, and for how long.

See

https://www.gov.uk/topic/personal-tax/capital-gains-tax

booksurr

it depends if the house to be sold has been the main home of its owner for the entire time he owned it. If it was not also the marital home at the same time as that then it will not be exempt as a married couple can only have one exempt home between them so the house to be sold would have a mix of exempt and non exempt periods

see this for example CGT calculation for ex home subsequently let out
http://forums.moneysavingexpert.com/showpost.php?p=69071134&postcount=6

G_M

Is costingbunny in the regular army or TA? Or perhaps a member of the British Muay Thai team?

costingbunny_2

Hi
We are not married

No idea 're comments about the army??

booksurr

costingbunny wrote: »

Hi
We are not married

No idea 're comments about the army??

OK. Re-reading your question it is unclear if you (both) have lived in the house that is to be sold as your main residence for the entire time you (both) have owned it

- if yes then all is fine, it will be exempt CGT because of private residence relief

- if not then as you are not married a transfer into his sole name will be counted as a disposal for CGT purposes anyway and so trigger a CGT liability at the date of the transfer, not the date of the subsequent sale. Therefore let us hope the personal reasons for you giving up your part ownership are compelling as it will crystallise a CGT liability for you when you do the transfer

(PS. a frequent typo of mine is martial not marital, hence army!)

antrobus

costingbunny wrote: »

... We own another house we have lived in for 2 yrs and which is being transferred into his sole name (personal reasons) we intend to sell this house soon. ...

When was this "another house" purchased?

Since you are not married, transferring this house into "his sole name" will count as a sale at market value for CGT purposes as far as you are concerned. Presumably, you can claim that it was your main residence throughout your period of ownership, and that therefore any gain is exempt.

When your partner then actually sells this property, he can presuambly similarly claim that it was also his main residence, throughout his period of ownership.

costingbunny_2

Hi
We have lived in this house ever since I bought it in 2013 and its our home.
It was in my name as I had the mortgage. My partner has paid the mortgage off so it's going in his name now. Think we're fine reading your advice. The other rented house in my partner s name will be subject to CGT on sale subject to deductions for when he lived there etc

costingbunny_2

We have both lived on the house since purchasing it

G_M

Can't resist............

it must have been wet up there in winter......

costingbunny_2

Sunday morning lazy typing!
:rotfl: