Property tax reliefs following marriage

Understanding SDLT and CGT implications where both partners own property individually pre-marriage

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Myself and my fiancé currently each own a property individually. I have owned my property since August 2015 (purchased for £130,000) and lived in it until September 2017 when I moved in with him. He purchased his property in September 2014 for £153,000. 

Since I moved out of my property, I have been renting this out.

We are getting married in June 2019 and are conscious that this is going to impact on the property tax reliefs availble to us. 

The plan over the next couple of years is to buy a new property together, but at present we are undecided whether we will just use the proceeds of sale from his property to do this, or whether we will sell both properties. At present, I would expect us to achieve gains of around £50,000 on each property upon a sale.

Question 1 (SDLT): Am I right in thinking that even if we choose to keep hold of my flat when we move (if only selling one property, we would only ever choose to sell the property we were living in at the time), we will not be subject to the higher SDLT rates on purchase as we will be selling our main residence?

Question 2 (CGT): As we are living in my fiance's property this will be our main residence for the purposes of CGT. In light of this, if I choose to sell my flat after we are married, will I still eligible to claim PPR for the period before I moved in with him, and lettings relief for the subsequent period?

Thank you

 

Replies (5)

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By Tim Vane
11th Sep 2018 11:54

How romantic.

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By Portia Nina Levin
11th Sep 2018 12:09

Aww, that's lovely! x

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By Accountant A
11th Sep 2018 12:37

Myself doesn't believe in tax planning out of wedlock.

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By johngroganjga
11th Sep 2018 13:06

The answer to your CGT question is Yes - plus the last 18 months before you sell.

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Replying to johngroganjga:
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By Portia Nina Levin
11th Sep 2018 13:10

Omission!

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