As I understand it, spouses or civil partners living together can only have one main residence between them. Does this apply regardless of which of them owns the property concerned?
My client has been married for a number of years to his second wife and lives mostly with her in her own home. He still owns and maintains his own previous marital home for his now grown up children and also lives there part time during the week for work purposes. They each therefore own one separate property.
Does the wife's home therefore become his main residence by default even though he does not have an financial interest in it?
Appreciate any answers!
Replies (6)
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As a married couple they can only have one PPR
In the absence of an election to determine the position it will be down to the facts which that is, his original house that he uses during the week, or her's being the current marital home.
I would say that in all probability it is the latter, and he has a potential liability on the former marital home, but it might be arguable that it is his original property - though that will leave W2 with an issue on her house.
Still a residence (possibly)
The current marital home comes with W2's office/job, ie. it's not owned by either of them , so no CGT issue there.
That does not stop it being there residence necessarily. However, the new fact that it is job-related may change the analysis, depending on the exact basis of occupancy.
TCGA s222 (6)(a) - in the
TCGA s222 (6)(a) - in the case of an individual living with his spouse or CP there can only be one residence or main residence for both, so long as living together and, where a notice under section (5)(a) affects both, it must be given by both.
Yes. A person's only or main residence (as a matter of fact) may be a rented property. If they then had another property that they owned and which they also used as a residence, then they might make an election for that property to be treated as their main residence.
If W2's accommodation is occupied under a service occupancy though it does not count as a residence and your chap might be deemed to be occupying the old house by virtue of section 222(8A)-(8D). See: http://www.hmrc.gov.uk/manuals/cgmanual/CG64555.htm