Residence Relief - marriage & letting

Residence Relief - marriage & letting

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Mr X bought property in Jun 04 which he lived in as his main residence until Dec 05. Mr X then moved in with Miss Y (in a property which she owns) in Dec 05 and let his original property. Mr X and Miss Y got married in Sep 07 and plan to sell both flats in Summer 08.

Believe that Mr X's property should be free of CGT due to 3 year rule + time spent as main residence? Miss Y's property should also be free of GCT as it is couple's main residence

Are any elections needed to ensure that both properties are free of GCT?

Any help appreciated
Nicholas Waring

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By User deleted
27th Dec 2007 13:34

No elections required.........
You are correct in your analysis. Based on 'fact' Mr X can claim main residence relief on his own property from Jun 04 to Dec 05. When this property is sold he will be entitled to the final 3 year exemption as property has been his main residence at some point during ownership period. If sold prior to Dec 08 will be free from CGT.

Second property also qualifies for main residence relief as based on the facts It has been Miss Y's main residence for full period of ownership.

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