What reliefs are we entitled to?
Question My partner and I (we are not married) have owned a buy-to-let property for four years and have just moved into it (having paid off the buy-to-let mortgage). We intend to live here for at least two years and wonder what will happen when we sell? Will we be entitled to capital gains tax letting relief (would we get two letting reliefs?) and our personal allowances even though we did not live in it before it was let out?
Arthur Weller replies:
The answer is you will get two letting reliefs when you sell. See www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64738 on the HMRC website, that joint owners can each get their own letting exemption. It is not necessary to have lived in the property before letting it out, to be eligible for letting relief.
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