arunasj
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PPR complicated case

PPR complicated case

Hi All

I have quite a complicated case here (at least it looks complicated to me).

Facts:

Boyfriend (UK resident) and girlfriend (Non-resident) purchased a house in the UK in Apr 2010.

They got married in Apr 2013 (still UK resident and non-resident respectively)

Wife plans to come back and live in the UK and become resident from Apr 2016. They plan on to sell property around Apr 2018. No additional properties owned during this period. Property is owned 50/50

Husband will qualify for full PPR on the sale.

Question - will wife qualify for full PPR on the sale in Apr 2018.

My understanding - PPR from Apr 2016 to Apr 2018 (actual occupation)

                                PPR from Apr 2015 to Apr 2016 (PPR because husband is resident an spends more than 90 days under new rules)

                                No PPR from Apr 2010 - Apr 2015.

Is my thinking correct here or am I missing something re period Apr 2010 - Apr 2015?

Many thanks in advance for your responses.

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07th Mar 2016 14:31

When you say they "both" got

When you say they "both" got married in April 2013, I assume that you mean that they got married to each other?

I agree with your analysis, with the exception of the confusion over whether the marriage was in April 2013 (in your narrative summary) or April 2015 (in your PPR analysis).

If the wife transfers her interest to the husband before sale the whole of the gain will be covered by PPR.

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By arunasj
07th Mar 2016 15:05

Fixed it to "They got married

Fixed it to "They got married to each other" :)

Marriage was in Apr 2013.

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07th Mar 2016 15:16

Then I think that (assuming the wife will be resident at the time of disposal) the gain attributable to the period April 2013 to April 2018 will be covered by PPR, with the gain for the period April 2010 to April 2013 being chargeable.

As I say, the "trick" would be for the wife to transfer her half of the property to the husband prior to disposal.

That being said, the rumours are that PPR is to be abolished...

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By ianhend
07th Mar 2016 16:57

more info needed?

Do we need to ask for extra info perhaps?

Any gain in respect of the wife/girlfriend will be exempt in respect of her interest in a dwelling house which is, or has at any time in her period of ownership been her only or main residence (CGTA 1992 s 222(1)).  Its possible that her share of the gain might be exempt.

You say that she is/has been a non-resident for tax purposes but this may not mean that the property has nevertheless not been her only or main residence.  What property did she live in, and what were her interests If any)  in that overseas property when she was outside the UK.  Was she living with Mum??

 

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