CGT - Pre and Post Marriage

We will see an accountant specialising in this area but just after thoughts from the members here.

The story goes like this.

When my wife and I met we each had our own PPOR which we both still own . Let's call them Property A (mine) and Property B (hers)

A few months before we married, in April 2013, I purchased a second property in my name (Property C) .

Property C was rented out for a year .
We both moved into C in April 2014 at which time both A and B became investment properties.

My wife is considering selling B so we're looking at how CGT will be applied.

We keep our finances separate

In dollar terms the ranking of the capital gain if all three were sold today would be C , followed by B, then A


The issue

Being her former PPOR, my wife could elect B to receive the full main residence exemption given that it's been less than 6 years since she vacated it. However, if she proceeds along those lines does C (in which she lives but does not own) automatically lose its main residence exemption status for the 4 out of 5 years it wasn't rented given that we're now married?

Assuming that is the case am I then left with no choice but to elect my former property A to be my main residence from 2014 to 2018?....at which point C gains main res exemption status coincident with the sale of B?

Part of me thinks that she could get the full CGT exemption and I still retain PPOR status on C (apart from the 1st year when it was rented) on the basis that it's me and not her that owns the property and it is me that will be assessed for CGT on the sale of either (or both of) A and C.

Looking forward to seeing any comments on this

 

Had a similar question a week or two ago worth looking at that post re two main residences.

 

Pretty sure she has to move back in to property B prior to selling, for this to work..

 

You can only have one property as a main residence at any one point in time (except with the 6 month rule which wouldn't apply here).

Spouses can only have one main residence between then fully exempt (or 2 partially).
So work out the point you became spouses and do some calculations.

 

And what you think a spouse is may b wrong. It does not mean married

 

Incorrect. Seek advice using real dates real amounts and include 3rd element costs and other choices