9:03 AM, 26th August 2020, About A year ago 9
I own several BTL properties, and sadly it looks as if the near future holds separation and eventual divorce. This will involve the sale of the BTL properties, and therefore a liability to Capital Gains Tax (CGT) upon realising the gain made on the properties.
One option under consideration is for me to go and live in one of the BTL properties that would have the greatest exposure to CGT. I have not previously lived in this property (or any of them for that matter), however, I am wondering as that property would become my primary residence – would this mean upon sale at some point in the future (if necessary), would I be liable to CGT?
I understand that had I lived in the property prior to letting it out then I would have been able to claim taper relief – but in the circumstances, I have outlined above, I not sure what the effect of moving into the property as my primary residence would have on CGT liability?
The best outcome for me would be to completely eliminate the 28% gain by living in the property, but any advice would be much appreciated in forming my exit strategy. The amount of profit would be approx. £150K on this particular property, so not an insignificant amount of CGT to handover to our beloved HMRC.
Thanks in anticipation of help or further direction.
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