Getting married with 2 main residences... what to do?

p00hsticks

newsgroupmonkey_ said:

Out of interest, can a married couple not have 2 separate residences?

They can, but they are only allowed to have one PPR (Principal Private Residence) between them for tax purposes.

If they are genuinely not living together then for CGT purposes they would be better off not getting married.

BPL

theoretica said:

BPL said:

p00hsticks said:

You have nine months CGT exemption from the date it ceases to be your PPR - and if you have been living in it for any length of time chances are that you will have little or no CGT liability anyhow.

I've been in it for 30 years. Am I only liable for CGT for 9 months after marriage, based on sale price minus the market value at M+9months?

The value at marriage (or marriage +9 months) is not used.  The only values used are purchase and sale and then a large proportion of that gain is exempt because of the years you lived there.

Thanks -that makes sense

BPL

theartfullodger said:

BPL said:

Getting married with 2 main residences... what to do?

Simple: Don't get married & save money - or get married because you both think money ain't everything.  Your choice, your decision.

Option 2 hence the post -> Getting married with 2 main residences... what to do?

canaldumidi

newsgroupmonkey_ said:

Out of interest, can a married couple not have 2 separate residences?

Is there anything that says they have to live together?

p00hsticks said:

They can, but they are only allowed to have one PPR (Principal Private Residence) between them for tax purposes.

 

Oops! My parents seperated when I was around 8 but remained married. Old school 'for the sake of the children'.

Each owned their own home, and each moved home 1ce or twice. As far as I know, CGT was never considered or paid.......

lisyloo

It might be too late in your case but a couple in that situation could sell one (or start selling one) prior to marriage.
the options then are to live in the new marital home (separately if required) or rent/hotel/sofa surf until the marriage or at least reduce the chances of exceeding the 9 months.

I did look into divorce (as an academic exercise) when considering buying a second property.
I decided it was perjury (or some such) to divorce without genuine grounds and possibly tax evasion if it’s a fraudulent divorce.
we rented our second home when it was required for business and the cgt plus stamp duty was part of the calculation.

we were genuinely living in 2 properties mostly together, so it was a bit annoying as we had genuine reasons that we couldn’t move
 (work in one location, family care in another).

BPL

lisyloo said:

It might be too late in your case but a couple in that situation could sell one (or start selling one) prior to marriage.
the options then are to live in the new marital home (separately if required) or rent/hotel/sofa surf until the marriage or at least reduce the chances of exceeding the 9 months.

I did look into divorce (as an academic exercise) when considering buying a second property.
I decided it was perjury (or some such) to divorce without genuine grounds and possibly tax evasion if it’s a fraudulent divorce.
we rented our second home when it was required for business and the cgt plus stamp duty was part of the calculation.

we were genuinely living in 2 properties mostly together, so it was a bit annoying as we had genuine reasons that we couldn’t move
 (work in one location, family care in another).

I've heard of divorcing for pension sharing reasons to avoid LTA / AA

Rosa_Damascena

theartfullodger said:

BPL said:

Getting married with 2 main residences... what to do?

Simple: Don't get married & save money - or get married because you both think money ain't everything.  Your choice, your decision.

I'd find it very difficult pooling finances in my late 40s having never done it before, so I think the OP is being brave. The fact of the matter is that the impression of having money is a magnet and I'd only consider it with someone in a better financial position to ensure I come out with the proportion invested (no more). There is no way I would give up my hard-earned nest and sanctuary!

theartfullodger

Rosa_Damascena said:

...

I'd find it very difficult pooling finances in my late 40s having never done it before, so I think the OP is being brave. The fact of the matter is that the impression of having money is a magnet and I'd only consider it with someone in a better financial position to ensure I come out with the proportion invested (no more). There is no way I would give up my hard-earned nest and sanctuary!

Yes: My wife and I keep out finances separately: But beware one matter! If I predecease my wife she should be entitled to 1/2 one of my pensions - a sum definitely worth having..  When checking with the pension trust that they'd got their records straight they asked if we have shared finances.   (? eh??).  Turns out they, along with many pension trusts, have the power to decide who gets the money.  So if e.g. someone was married but had been living with someone else for 10 years, two kids, clearly no question they were "a couple", the pension trust might decide who gets the remaining pension.

Long story short, we now have largely separate finances but a joint account for most regular payments (council tax, 'phone, insurance etc etc etc..)   

lisyloo

BPL said:

lisyloo said:

It might be too late in your case but a couple in that situation could sell one (or start selling one) prior to marriage.
the options then are to live in the new marital home (separately if required) or rent/hotel/sofa surf until the marriage or at least reduce the chances of exceeding the 9 months.

I did look into divorce (as an academic exercise) when considering buying a second property.
I decided it was perjury (or some such) to divorce without genuine grounds and possibly tax evasion if it’s a fraudulent divorce.
we rented our second home when it was required for business and the cgt plus stamp duty was part of the calculation.

we were genuinely living in 2 properties mostly together, so it was a bit annoying as we had genuine reasons that we couldn’t move
 (work in one location, family care in another).

I've heard of divorcing for pension sharing reasons to avoid LTA / AA

There are a limited number of grounds for divorce.
tax reasons isn’t one of them.
i can’t see how it happens without lying to the authorities (in this case for a financial gain).