Declaration of second property

[Unregistered]

Hi -

Just got married and both my husband and I have a house each.
- How do we declare the two property ....? We will not be renting it as my mother
stays in the house most of the time.

We have declared one of the property as our Principle Private Residence.


What should the second house be declare as ......

The second house has no mortgage on it and not claiming TRS.

Hope this is the correct form.!!!

Confused !!!

 

[jhegarty]

Hi -

Just got married and both my husband and I have a house each.
- How do we declare the two property ....? We will not be renting it as my mother
stays in the house most of the time.

We have declared one of the property as our Principle Private Residence.


What should the second house be declare as ......

The second house has no mortgage on it and not claiming TRS.

Hope this is the correct form.!!!

Confused !!!

i can't think of anything that needs to be "delcared"...

the only issue I can think of is you sell the other house , as its not your primary residence you will have to pay CGT....

 

[Unregistered]

That's exactly it

will it be subject to CGT as it is not an investment property.
and will I inform the revenue in order to get a valuation for a lock in value ...
-up to now it was my principle private residence

 

[ClubMan]

That's exactly it

will it be subject to CGT as it is not an investment property.
and will I inform the revenue in order to get a valuation for a lock in value ...
-up to now it was my principle private residence

Obviously CGT is only an issue when it comes to selling the property. If you don't dispose of it within 12 months of vacating it as your PPR then it will de facto become an investment property even if no rental income derives from it. Stamp duty clawback (on a former PPR rented out within five years of purchase as an owner occupier) will not apply if you don't rent the property. There is no concept of a lock in valuation when it comes to properties which are subject to partial CGT assessment due to them being PPRs and investment properties at different times. See this topic for an explanation of how partial CGT assessment is done on a pro-rata basis based on how long the property was an investment rather than PPR property and not on the basis of the timing of capital gains during PPR and investment periods. (Hope that bit makes sense!?). I'm not sure if there is any exemption in this case because the property is being provided to a family member as a PPR for them. I suspect not but it might be worth checking out just in case.

 

[jhegarty]

I'm not sure if there is any exemption in this case because the property is being provided to a family member as a PPR for them. I suspect not but it might be worth checking out just in case.

i think there is, but only for a dependent relative..

 

[Unregistered]

look like Friday 13th after all ..............

Stand to loose out in a lot of money just by getting wed!

Hmmm I be watching for a post in the letting off steam forum...........

why men should not be nagged into getting married .

thnx all for yer help ..

 

[oysterman]

If your potential CGT exposure is very large you could avoid it by selling the property now and buying an equivalent for your relative with the proceeds.

Of course you'd face transaction costs which might make such a course of action not worth the hassle.

Alternatively, you could hang on to it and wait for the property crash that's on its way....that way when you come to sell it there'll be no danger of CGT whatsoever.

In the final alternative you could count your lucky stars that on getting married you have such a valuable asset free from borrowing and be happy to pay some CGT on the significant profit you're likely to make when selling it in the future. After all, CGT in this country is at a ridiculously low level compared to other tax rates (i.e. the ones that the little people face).

 

[Unregistered]

If your potential CGT exposure is very large you could avoid it by selling the property now and buying an equivalent for your relative with the proceeds.


now that an idea ................hmmmmmmmmmmm


"In the final alternative you could count your lucky stars that on getting married"

I am he's not right now ........

I bought some share that are well under water but through an Shared Purchase Scheme( less 42% bik) can I write this loss against the house CGT ??

Does it have to be the same year....

 

[ClubMan]

If your potential CGT exposure is very large you could avoid it by selling the property now and buying an equivalent for your relative with the proceeds.


now that an idea ................hmmmmmmmmmmm

This would presumaby just allow you to take a CGT free gain on the original property but, as mentioned above, you would be hit for selling and buying costs and the new property would still be subject to CGT when it comes to reselling it.

"In the final alternative you could count your lucky stars that on getting married"

I am he's not right now ........

I bought some share that are well under water but through an Shared Purchase Scheme( less 42% bik) can I write this loss against the house CGT ??

Does it have to be the same year....

If you still hold these shares and they are not literally worthless then you cannot write off the loss. Capital losses can only be offset against gains once they have been actually incurred at disposal and not when they are just paper losses. There is some mechanism whereby worthless shares which were never disposed of but which can never be traded can be written off as losses but I'm not sure of the details (there was a thread on this but it seems to have disappeared). Where you incur capital losses you can carry them forward indefinitely to write off against future capital gains. You don't have to write them off in the year in which they were incurred.

Hope that helps.

 

[Unregistered]

If you still hold these shares and they are not literally worthless then you cannot write off the loss. Capital losses can only be offset against gains once they have been actually incurred at disposal and not when they are just paper losses. There is some mechanism whereby worthless shares which were never disposed of but which can never be traded can be written off as losses but I'm not sure of the details (there was a thread on this but it seems to have disappeared). Where you incur capital losses you can carry them forward indefinitely to write off against future capital gains. You don't have to write them off in the year in which they were incurred.

Hope that helps.

Yes Clubmann - helps alot thnx

.......may not be divorce after all....

just when I thought thoose share where crap ......