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    • Cakesfordays
    • By Cakesfordays 12th May 18, 9:01 PM
    • 1Posts
    • 0Thanks
    Capital gains tax issues for only home
    • #1
    • 12th May 18, 9:01 PM
    Capital gains tax issues for only home 12th May 18 at 9:01 PM

    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.
Page 1
    • Keep pedalling
    • By Keep pedalling 13th May 18, 4:38 PM
    • 6,120 Posts
    • 7,081 Thanks
    Keep pedalling
    • #2
    • 13th May 18, 4:38 PM
    • #2
    • 13th May 18, 4:38 PM
    I believe he would have had to nominate the house as his primary residence within 2 years of obtaining ownership, so if he did not do this then I don!!!8217;t think he is going to be able to avoid CGT.
    • Pennywise
    • By Pennywise 17th May 18, 12:58 PM
    • 11,309 Posts
    • 21,565 Thanks
    • #3
    • 17th May 18, 12:58 PM
    • #3
    • 17th May 18, 12:58 PM
    It's not clear whether he ever lived in it as his home - perhaps you could confirm if and when he did.
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