Capital gains tax issues for only home
Cakesfordays
Forumite 1 Post
Hi!
I am wondering if anyone can help us. My husband and I are currently at the start of selling our ( i say our loosely as it is in my husbands name and not mine) only owned home.
The situation is complicated -
My husband bought the property in June 2003 and spent 9 months gutting it and renovating it to live in with his family. He was then posted to another area in the country and had to quickly put it up for rent ( He gained permission from the mortgage lender before hand). The property was then like this until Nov 2006, when he divorced his then wife. At which point he had to pay his then wife 50,000 and remortgaged for 125,000. He used the equity in the house to do this and the only mortgage he could get was a buy-to-let. He has been posted away from the area since then and has been living in MOD accommodation. Are we liable for CGT for the period he let the property for with a buy to let mortgage, even though he couldn't live in it due to work? Or is the fact that the mortgage was switched to a buy to let regardless of the situation he was in trump the Forces allowance for job related accommodation rules.
We are trying to figure out how much of the house sale we need to put aside for CGT after we have sold the house and then purchased the one we have had an offer accepted on.
Thank you all in advance.
I am wondering if anyone can help us. My husband and I are currently at the start of selling our ( i say our loosely as it is in my husbands name and not mine) only owned home.
The situation is complicated -
My husband bought the property in June 2003 and spent 9 months gutting it and renovating it to live in with his family. He was then posted to another area in the country and had to quickly put it up for rent ( He gained permission from the mortgage lender before hand). The property was then like this until Nov 2006, when he divorced his then wife. At which point he had to pay his then wife 50,000 and remortgaged for 125,000. He used the equity in the house to do this and the only mortgage he could get was a buy-to-let. He has been posted away from the area since then and has been living in MOD accommodation. Are we liable for CGT for the period he let the property for with a buy to let mortgage, even though he couldn't live in it due to work? Or is the fact that the mortgage was switched to a buy to let regardless of the situation he was in trump the Forces allowance for job related accommodation rules.
We are trying to figure out how much of the house sale we need to put aside for CGT after we have sold the house and then purchased the one we have had an offer accepted on.
Thank you all in advance.
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https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2018