2 houses and a wedding....

[Chupacabra]

HI everyone! I was wondering if you could clarify few things for me. Myself and my partner we currently own 1 house each, we will be getting married next July. I guess 1 of the 2 property will not be considered main occupation, wot's the legal implication and will we be taxed more on the 2nd occupation? We do have 2 mortgages each do we legally have to inform our banks of our change in marital status?

Blue skies ....

 

[ClubMan]

A married couple can only have a single PPR (Principal Private Residence). This thread (and the one that it links on to) may be of interest to you if you intend to hold onto the second property as a rental/investment property. If you do this then you can write off 100% of mortgage interest against rental income but you will no longer qualify for owner occupier mortgage interest tax relief. If you plan to hold onto it in this way then have a look at the Property Investment forum which contains a lot of useful information about this stuff. If you sell the second property within 12 months of vacation then no CGT will apply on any gain arising. The other threads deal in more detail with the other tax, CGT and (where applicable) stamp duty clawback issues. Hope that helps.

 

[Chupacabra]

just another little tip...do we now have to pay stamp duty on the other property?

 

[ClubMan]

If it was bought as an owner occupier PPR and is rented out within five years of purchase then a stamp duty clawback applies. Otherwise no stamp duty liability arises even if you rent it out. If in doubt get independent, professional advice.