Declaration of second property

U

Unregistered

Guest
Hi -

Just got married and both my husband and I have a house each.
- How do we declare the two property ....? We will not be renting it as my mother
stays in the house most of the time.

We have declared one of the property as our Principle Private Residence.


What should the second house be declare as ......

The second house has no mortgage on it and not claiming TRS.

Hope this is the correct form.!!!

Confused !!!
 

i can't think of anything that needs to be "delcared"...

the only issue I can think of is you sell the other house , as its not your primary residence you will have to pay CGT....
 
That's exactly it

will it be subject to CGT as it is not an investment property.
and will I inform the revenue in order to get a valuation for a lock in value ...
-up to now it was my principle private residence
 
Unregistered said:
That's exactly it

will it be subject to CGT as it is not an investment property.
and will I inform the revenue in order to get a valuation for a lock in value ...
-up to now it was my principle private residence
Click to expand...

Obviously CGT is only an issue when it comes to selling the property. If you don't dispose of it within 12 months of vacating it as your PPR then it will de facto become an investment property even if no rental income derives from it. Stamp duty clawback (on a former PPR rented out within five years of purchase as an owner occupier) will not apply if you don't rent the property. There is no concept of a lock in valuation when it comes to properties which are subject to partial CGT assessment due to them being PPRs and investment properties at different times. See this topic for an explanation of how partial CGT assessment is done on a pro-rata basis based on how long the property was an investment rather than PPR property and not on the basis of the timing of capital gains during PPR and investment periods. (Hope that bit makes sense!?). I'm not sure if there is any exemption in this case because the property is being provided to a family member as a PPR for them. I suspect not but it might be worth checking out just in case.
 
ClubMan said:
I'm not sure if there is any exemption in this case because the property is being provided to a family member as a PPR for them. I suspect not but it might be worth checking out just in case.
Click to expand...

i think there is, but only for a dependent relative..
 
look like Friday 13th after all ..............

Stand to loose out in a lot of money just by getting wed!

Hmmm I be watching for a post in the letting off steam forum...........

why men should not be nagged into getting married .

thnx all for yer help ..
 
If your potential CGT exposure is very large you could avoid it by selling the property now and buying an equivalent for your relative with the proceeds.

Of course you'd face transaction costs which might make such a course of action not worth the hassle.

Alternatively, you could hang on to it and wait for the property crash that's on its way....that way when you come to sell it there'll be no danger of CGT whatsoever.

In the final alternative you could count your lucky stars that on getting married you have such a valuable asset free from borrowing and be happy to pay some CGT on the significant profit you're likely to make when selling it in the future. After all, CGT in this country is at a ridiculously low level compared to other tax rates (i.e. the ones that the little people face).
 
 
 
 
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