Recently, the headlines have been focusing on the disposal of politician Angela Rayner’s house and whether or not she correctly calculated her Capital Gains Tax (CGT) liability. Our Tax Partner, Lucy Orrow, looks at some of the main points which have been raised in this evolving story…
The sale of your home is exempt from Capital Gains Tax (CGT), if you have always lived in it as your main residence.
It is not possible for a husband and wife to have more than one main residence.
If you move between properties or own more than one, you can elect which is to be treated as your main residence (within 2 years of a change of ownership).
The final 9 months of ownership is automatically exempt, even if you are not living in the property.
You can have periods of absence of up to 3 years for any reason; up to 4 years if you are required to work elsewhere; or for any length of time if your work is overseas but you must return to live in the property as your main residence.
At Lambert Chapman LLP, we work with clients to determine what their CGT liability is or could be. With the changing allowances and potential change of Government later this year, anticipating tax liabilities can be important.
Divorcing Couples
The rules for CGT on divorcing couples have also changed in recent years, which could also be relevant to Angela’s tax position.
Although there are now more exemptions available, we do offer guidance and advice to divorcing couples and their professional advisors on the potential CGT liabilities which can still arise when separation has occurred.
If you would like to know more, please look at our previous articles or contact Lucy Orrow for further information:
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.