CGT confusion - 2 semis into one

waveydavey0

We lived at No. 10, semi with 12 next door.
Owner of No. 12 passed away.
We bought (private sale) No. 12 from their son, and immediately knocked through - entire residence is now our permanent, primary residence (and has been for 3 years.
Council informed, re-numbered to all is now 10, and Council Tax paid on one big residence.
For convenience, we kept 2x utility supplies (gas, water, elec). This will help if we ever revert back to split, but might be confusing for CGT purposes)

If we sell as one big house, will there be CGT ?
If we split it back to 2 and immediately sell one, will there be CGT ?
If we split back to 2, and rent one out, will there be CGT when we eventually sell it ?

agrinnall

1. No
2. No
3. There will be a CGT liability but whether any will actually be due depends on the circumstances and timing of the sale.

waveydavey0

Thanks for the response, @agrinnall, could you elaborate a bit on 2. please ? Someone told me that there would be CGT on 2 as one of the halves then becomes "second house" and thus liable to CGT.
It all seems a black art to me.

agrinnall

OK, for 2 then yes, there is a theoretical liability, but because it has been your PPR up to the point of split and sale then the liability will be assessed as £0.

waveydavey0

Would you advise that I get full advice from a solicitor (who deals with property, BTL and such) ?

agrinnall

Not from a solicitor, no, perhaps a tax accountant.

Linton

waveydavey0 wrote: »

Thanks for the response, @agrinnall, could you elaborate a bit on 2. please ? Someone told me that there would be CGT on 2 as one of the halves then becomes "second house" and thus liable to CGT.
It all seems a black art to me.

You would only be charged CGT for the time period when it wasnt your primary residence, so selling immediately means no CGT.