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Readers’ forum: Two residences

05 January 2016
Issue: 4532 / Categories: Forum & Feedback , Only or main residence

Will a property be eligible for only or main residence capital gains tax relief?

A married client inherited a property in 2004 about 100 miles from where she lived. At the time she owned a half share in her main residence where she lived with her husband. Subsequently she conveyed that half share to her husband as a gift. She also deregistered from that address for council tax purposes and no longer appeared on the electoral roll.

After the grant of probate for the newly inherited property she registered for council tax there and qualified for the single-person discount. She was also entered on the electoral roll and the address was used for HMRC pension and banking purposes. However she did not make a formal election for the new property to be treated as her main residence within the required two years and this avenue appears closed.

She is now contemplating the sale of the inherited property. She has sought...

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