Newly Married and both own houses

C

cityworker

Registered User
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I recently got married and both myslef and my husband had our house each before we got married. My husband lived in his respective house up until we got married as commutting was an issue

Now both houses are relatively small and we want to sell them both to afford the family.

I'm just wondering what implications there now are. As he now lives with me in my house, Is his house seen as an Investment Property and we have to pay CGT when we sell.

Would we been better off to sell the house before we got married ?
Prehaps he would be better off to move back in to his house before we sell it ?

Just wonder what we need to consider
 
Your house is the family PPR, however until recently your husband's house was his PPR as he was not living with you. You are entitled to the last 12 months to be considered as residency. So in effect sell both houses now and you will pay no CGT once it's less than 12 months since your husband moved out of his house.
 
If we sell his now and hold on to mine until we find the right house will that work ?

Its crazy just feels like we are penalised for getting married !
 
You are not being penalised for getting married. The same rules (one PPR per couple and the CGT issues that may arise as a consequence of them each owning a property) apply to unmarried cohabiting couples.

You can move into one of the properties as your joint PPR and it will remain exempt from CGT. If you sell the other one within 12 months of one of you vacating it as your sole PPR then you avoid CGT on that one too.
 
If we couldmt sell my husbands house within the 12months , How much capitals gains would we have to pay.

I'm worried because the area where his house is - isnt really selling at all, and we may be left with the house ?

Price Paid for the house 2 years ago - €300k
Probably worth - €370k now

I'm clueless when it comes these things ?

Just wonder what other couples in this situation have done ?
 
cityworker said:
If we couldmt sell my husbands house within the 12months , How much capitals gains would we have to pay.

I'm worried because the area where his house is - isnt really selling at all, and we may be left with the house ?

Price Paid for the house 2 years ago - €300k
Probably worth - €370k now

I'm clueless when it comes these things ?

Just wonder what other couples in this situation have done ?
Click to expand...
So - say he lived in it as his PPR for 2 years even and then it took 3 years to sell it:

(3 - 1) / (2 + 3) = 2/5ths = 40% of any overall gain would be assessable for CGT. If it cost €300K and eventually sold for €400K then the gross capital gain is €100K. There are certain allowances and expenses that can be deducted so let's arbitrarily say that the net gain was €90K. In this case:

€90K x 40% x 20% = €7.2K would be the approximate CGT liability.

What have others done? Check out the many threads on the same issue of a couple marrying and deciding what to do with one of their former individual PPRs.
 
ClubMan said:
So - say he lived in it as his PPR for 2 years even and then it took 3 years to sell it:

(3 - 1) / (2 + 3) = 2/5ths = 40% of any overall gain would be assessable for CGT.
Click to expand...
Just in case you don't follow the numbers above....

(Period of non PPR ownership [- final 12 months if final 12 months of ownership are non PPR]) / (Total period of ownership) =

Period of non PPR ownership = 3 years (in the above example)
The 12 month exemption will be relevant, as long as he doesn't move back into the property as his PPR during the final 12 months of ownership.
Total period of ownership = Time as PPR (2) + Time as non PPR (3) = 5
 
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