I have a friend who started building what would be a PPOR with his partner. Long story short is that during the building phase the relationship broke down and they have agreed the best course of actionis is to sell the property when its completed. When its all said and done would something like this be treated as an investment or PPOR?
It can't be an investment if never rented out. But could still be subject to CGT. There may be a way around this though.
Thanks Terry_w - good point on the clarification between CGT and investment, I hadnt thought of it like that. I have told him that it would be best to seek specifc advice from an expert.
The general rule is that it has to be lived in for 3 months after building complete for it to be CGT free. I guess the issue will be if one lives there and the other doesn't the one that doesn't live there may not be able to claim the exemption on their share.
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