I have a client whose parents bought two semi-detached houses in 1972 and knocked them together to form one house. Ever since that is how they have been used. The two houses have separate deeds, but they pay one council tax bill on the whole property, and utilty bills are similarly combined. There is only one downstairs toilet in the entire property.
Now they wish to separate them again and gift one of them to their son. They are worried since another accountant thinks this will give rise to a chargeable gain. I think they will be entitled to PPR relief on the entire combined property. Which of us is right? Many thanks!
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As the parents bought their house 42 years ago, it seems safe to assume that the son is grown up. Perhaps, this is a reflection on the modern condition. The only way that the parents can persuade their grown up son to leave home is to split their home in two and give half to their son!