'Tenancy in common' & CGT

My husband and I want to buy a block of land with a couple of friends, build on it and then sell it.

Becoming 'tenants in common' seems most suitable as our friends have a child and so they need the freedom to deal with their interest if they need to.

If my husband and I lived in the house as our main residence for at least 3 months after construction (as per CGT guidelines), would we be exempt from capital gains tax when the house is sold?

Obviously our friends would be CGT liable.

Am I on the right track or are there different rules for 'tenants in common' and CGT?

Thanks for your assistance.
Bianca

 

My pleasure

PS Before making an estate planning decision speak to an Estate Planning specialist. Also get your will updated...

 

You should also enter into an agreement with your friends to regulate your joint ownership.

Think about this - if your friends want out - who's going to buy a 1/2 share in the entirety of the property which you own the other half of and are in possession of?

Whilst it may not be "your" problem but I think in practice your friends' view about the liquity of their position is illusory.

Each of you should get independent legal advice.

If you don't want to do that, from memory there's a "Buying a property with Friends" agreement on LawCentral. Tell 'em we sent you.

Cheers
N

 

Thank you both for your advice. I will investigate further.