My client has subdivided their existing property (which has been their primary dwelling), and are selling both the newly subdivided plot and their existing dwelling separately.
Exchange on both sales took place on the same date (with the plot sale time stamped first), but completion is taking place in the reverse order (i.e. the sale of the exiting dwelling will complete before the sale of the plot).
I am aware of the rules around CGT and that the date of exchange (not completion) is key – since exchange on the sale of the subdivided plot took place (albeit marginally) before the exchange on the existing dwelling, primary residence relief for CGT is available on both sales (the plot sale being a partial sale of a primary dwelling).
My client’s plans changed however and they emigrated before exchange took place on either part of the sale, hence NRCGT coming into play.
My question therefore – is the date of exchange also the key date for claiming primary residence relief for NRCGT?
If it is, then I assume I should make an NRCGT submission for their plot sale (and claim primary residence relief on the partial sale), before making a second NRCGT submission for their house sale (again claiming primary residence relief)?
If it’s not (i.e. completion date is relevant) then are my clients going to be liable for NRCGT on the plot sale as it completes after the sale of their existing dwelling?
I’ve searched for answers to this but as it’s an unusual situation I’ve been unable to find any guidance and would appreciate assistance…
