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I act for an elderly married couple and their grown up son who have recently sold their joint main residence. The husband and wife have owned the property jointly since 1974, originally using it for business purposes and then converting it to their main home and letting part of it. In 2003, they transferred one-third of the property to their eldest son. At this stage there was a capital gain and the letting exemption of £40,000 by each parent was utilised at this time.
I act for an elderly married couple and their grown up son who have recently sold their joint main residence. The husband and wife have owned the property jointly since 1974 originally using it for business purposes and then converting it to their main home and letting part of it. In 2003 they transferred one-third of the property to their eldest son. At this stage there was a capital gain and the letting exemption of £40 000 by each parent was utilised at this time.
In 2006 the property was sold. Can the letting exemption be utilised again by the mother and father who had already received £40 000 of relief on the earlier disposal?
Readers' thoughts are welcomed.
Query T16 962 — MSJ.
Reply by Hodgy:
Letting relief is available if there is a disposal to which TCGA 1992 s 222...
