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Live and let live

24 July 2012
Issue: 4363 / Categories: Forum & Feedback , Capital Gains , Only or main residence
A married couple purchased a six-bedroom house and other buildings as well as a nearby three-bed cottage which all together surround a courtyard. The cottage had previously been transferred to the wife and used as additional accommodation and some lettings

In June 2001 a married couple jointly bought a six-bedroom house and a separate (but very close) three-bedroom cottage with its own kitchen and bathroom and some outbuildings all forming a courtyard.

The whole property is a single dwelling and is within the permitted area. It has doubled in value over the past 11 years.

Since purchase the main house has been the couple’s only residence. The cottage has from December 2001 been owned by the wife alone; she pays tax at a lower marginal rate than her husband.

It has been used partly as ancillary accommodation for the main house (for visiting family and friends children’s sleepovers and sometimes as with guest accommodation in any residence being vacant) but for the rest of the time it has been let or available to let on a mixture...

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