CGT on subdividing main residence
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dun
Apprentice
Joined: 13 Jan 2005
Posts: 6
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 Posted: 01/03/08 - 09:49 Post subject: |
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| Hello everybody! My wife and I own a big house in the country. It is our main residence. Since we have two kids, we would like to subdivide the house so each part could be given to one of our children. Can anyone tell us about the possible tax implications? Is there a CGT on subdividing main residence. Thank you in advance. |
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delmar
Apprentice
Joined: 20 Jun 2004
Posts: 6
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| Posted: 02/02/08 - 01:47 Post subject: |
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| Hi there! When you have more than one kid, arranging property during the course of your life is a wise thing to do. In that way you avoid possible conflicts which can arise. About your question, I think that when you subdivide your main residence you are not eligible for the CGT. If you retain the ownership over the all newly created parts of property, there is no gain. So, you don’t have to pay any taxes. In case you sell some of your property, HMRC might see it as a profit and then you’ll be eligible for the CGT. So, if you don’t want to sell your property, you don’t have to worry about CGT. Bye! |
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