Converting two flats into one.
My Partner and I jointly own two neighboring flats; we have resided in one for 9 years and purchased the neighboring flat 3 years ago, renting it out ever since. We are considering converting both flats into one large property to live in rather than pay costs to move.
Will we be charged stamp duty on registering the two flats as one property (obviously we paid stamp duty originally on both)?
Will we be liable to pay CGT upon conversion for the rented flat?James says:
No Stamp Duty Land Tax and no CGT if you occupy the enlarged flat as your main residence. When you eventually sell, there may be some CGT payable in respect of the three years the second flat was let out, but there is an exemption of up to £40K for each of you in respect of this so it is unlikely that there would be very much tax payable
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