PPR and couple cohabiting

BriNylon

If a couple live together as a married couple, and they jointly own 2 properties, can one person nominate property one as PPR and the other nominate property 2?

[Deleted User]

Principal private residence relief is a matter of fact. It is where the owner lives that matters. 

If the couple are living together in the same house, it is that property which qualifies. Many believe that, because they own only one property they are entitled to PPR relief whether they live in it or not. 

theoretica

If you are married or in a civil partnership (and not separated) my understanding is you are only allowed one principal residence between you.

Jeremy535897

That is correct. People who cohabit without being married or in a civil partnership can have two properties as main residences, but the gains could only be fully covered by main residence relief where person A owned property A and lived in property A for some of the time as a residence, and person B owned property B and lived in property B for some of the time as a residence. 

[Deleted User]

I think that we are straying from the original scenario. Both properties are jointly owned and the joint owners live together. 

I can’t fathom how one of the joint owners could ‘nominate’ any other property as PPR. 

jimmo

purdyoaten2 said:

I think that we are straying from the original scenario. Both properties are jointly owned and the joint owners live together. 

I can’t fathom how one of the joint owners could ‘nominate’ any other property as PPR. 

Jeremy is absolutely right. The tax efficient way for an unmarried couple is for each to own one house, live in both simultaneously, and for each person to nominate the property they own.

It is also perfectly feasible for an unmarried couple to jointly own 2 properties, live in both simultaneously and for them to nominate one property each, not exactly tax efficient but perfectly feasible.

 

[Deleted User]

jimmo said:

purdyoaten2 said:

I think that we are straying from the original scenario. Both properties are jointly owned and the joint owners live together. 

I can’t fathom how one of the joint owners could ‘nominate’ any other property as PPR. 

Jeremy is absolutely right. The tax efficient way for an unmarried couple is for each to own one house, live in both simultaneously, and for each person to nominate the property they own.

It is also perfectly feasible for an unmarried couple to jointly own 2 properties, live in both simultaneously and for them to nominate one property each, not exactly tax efficient but perfectly feasible.

 

Yes - and that happens frequently (two single persons owning a house each before deciding to live together). However, op has stated that he/she is married and theoretica seems to have provided the answer?

sheramber

The OP said living together as a married couple- might not mean actually married.

[Deleted User]

sheramber said:

The OP said living together as a married couple- might not mean actually married.

Fair enough and a great point! Used to be very important when I was in HMRC - some very awkward telephone calls!