Just Married, 2 Houses, Must we sell one within 12mths to avoid CGT?

Syracus

Hi all, just joined, primarily to see if I can get an answer to this;

I've just got married and like some 'slightly' older couples we each own a house.
I am working away from my Principle Private Residence at present.
We are both paying PAYE at the upper limit.

Q - Are we immediately assumed to be living in the one house automatically by revenue?

Q - If so, does this mean that if we dispose of one house the owner will be subject to CGT? Unless it is disposed off within the 12mths exemption. i.e. are we forced to sell one house within 12mths so that we will not be subject to CGT?

The thing is, in the current climate we would prefer to keep both houses, not rented, until the market recovers, which could be in a few years.

Berti Vogts

I think Revenue would say that if you are a married couple living together, then you can only have 1 PPR and CGT would potentially be payable on the sale of the non PPR.

However, when calculating the CGT due on the sale of a house which was a PPR at one stage, your taxable gain is reduced by the proportion of time of the total period of ownership when the house was your PPR. For example, if the house was your PPR for 5 years and you then rent the house for 5 years, you would only be taxable on 4/10s of the gain, i.e. the first 5 years + 12 months is exempt.

Mr. Incognito

Property and CGT are always matter to be dealt with by a professional.

Thread closed.

Read the charter.