C
Chazy
Guest
My husband and his ex-wife decided to build a house (property A) in the place of their marital home garage, the first architect drawings stamped FEB 2003. They've seperated a few months later, they've decided to carry on with building of Property A. They concluded (for divorce agreement) that my husband will then take property and she will remain in the marital home.
While the house was being built, my husband moved in with his sister (just round the corner) and when the new house was completed in MAY 2004 my husband moved in there. To save costs he's rented out a room to a couple (like houseshare) and the couple paid reduced rent and paid all utility bills - my husband kept all his mail going to the marital home as he was right next door and to keep things simple.
In FEB 2005 he bought the house that we're living in now, and he rented out Property A from APR 2005 up to date.
He's looking to sell property A and from reading up about CGT he should be exempt from CGT because he lived in property A for 9 months then the house was empty for 2months and then rented it out up to date; and then you are exempt from CGT for 36 months from when you lived in it (well the house is not even 3 years old) - hope my understanding of this is correct??? Sorry for my ignorance
Now for the advice bit please everyone...
1) In the time that he's lived in Property A he's not got any documentation (bills) because the other couple in the house paid it and he was still registered at the marital home, he's only got he's divorce paper (issued NOV 05-Separation 03) as proof that he has separated and obviously then moved out of the marital home. Would this be enough??
2) I've read that you have to write to the tax office to nominate your main residence, he's never done this because he didn't know about it until now, and because property A was only short term home. Will this be a major issue?
Last Question
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3) Should he qualify to be exempt from tax; does he still fill in the capital gains tax section on his tax return form and send in other documentation like he's divorce letter, solicitors letter at the time he bought a new house and tenancy agreement from APR 05, or does he not complete the capital gains section? And then when the tax office is ready they will request the above documentation mentioned??
Sorry i know this is a long thread and i appreciate you reading this, he's going to see an accountant but i just want to roughly find out where he stands and get all the documents together before seeing the accountant to make things easier for everyone.
Thank you for reading the thread, and any advice is very much appreciated!!!
While the house was being built, my husband moved in with his sister (just round the corner) and when the new house was completed in MAY 2004 my husband moved in there. To save costs he's rented out a room to a couple (like houseshare) and the couple paid reduced rent and paid all utility bills - my husband kept all his mail going to the marital home as he was right next door and to keep things simple.
In FEB 2005 he bought the house that we're living in now, and he rented out Property A from APR 2005 up to date.
He's looking to sell property A and from reading up about CGT he should be exempt from CGT because he lived in property A for 9 months then the house was empty for 2months and then rented it out up to date; and then you are exempt from CGT for 36 months from when you lived in it (well the house is not even 3 years old) - hope my understanding of this is correct??? Sorry for my ignorance
Now for the advice bit please everyone...
1) In the time that he's lived in Property A he's not got any documentation (bills) because the other couple in the house paid it and he was still registered at the marital home, he's only got he's divorce paper (issued NOV 05-Separation 03) as proof that he has separated and obviously then moved out of the marital home. Would this be enough??
2) I've read that you have to write to the tax office to nominate your main residence, he's never done this because he didn't know about it until now, and because property A was only short term home. Will this be a major issue?
Last Question
...3) Should he qualify to be exempt from tax; does he still fill in the capital gains tax section on his tax return form and send in other documentation like he's divorce letter, solicitors letter at the time he bought a new house and tenancy agreement from APR 05, or does he not complete the capital gains section? And then when the tax office is ready they will request the above documentation mentioned??
Sorry i know this is a long thread and i appreciate you reading this, he's going to see an accountant but i just want to roughly find out where he stands and get all the documents together before seeing the accountant to make things easier for everyone.
Thank you for reading the thread, and any advice is very much appreciated!!!