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Are We Able to Caim Letting Relief On This Property?

Question

My wife, myself, brother in law and sister in law equally own a second property together which my wife’s mother lives in. We do not charge her rent but she agreed to the upkeep of the property in leu. At no point have any of us lived in the property so it has never been our main residence.

 

Are we able to claim letting relief on this property? We are about to sell it. The property cost £40,000 12 years ago and is now valued at £130,000.

 

Arthur Says:

Letting relief is a relief from capital gains tax that is available only to a taxpayer who is claiming principal private residence (ppr)relief. If the property has never been the ppr of the owners of the property, then the owners are not eligible to letting relief. However, there could possibly be a reason why you should not be liable to the full capital gains tax bill. I would need to know who paid for the property 12 years ago.

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