Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Live and let live

24 July 2012
Issue: 4363 / Categories: Forum & Feedback , Capital Gains , Only or main residence
A married couple purchased a six-bedroom house and other buildings as well as a nearby three-bed cottage which all together surround a courtyard. The cottage had previously been transferred to the wife and used as additional accommodation and some lettings

In June 2001 a married couple jointly bought a six-bedroom house and a separate (but very close) three-bedroom cottage with its own kitchen and bathroom and some outbuildings all forming a courtyard.

The whole property is a single dwelling and is within the permitted area. It has doubled in value over the past 11 years.

Since purchase the main house has been the couple’s only residence. The cottage has from December 2001 been owned by the wife alone; she pays tax at a lower marginal rate than her husband.

It has been used partly as ancillary accommodation for the main house (for visiting family and friends children’s sleepovers and sometimes as with guest accommodation in any residence being vacant) but for the rest of the time it has been let or available to let on a mixture of long-term...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon