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Two amounts of lettings relief available when property is gifted in two tranches?
Our clients are a husband and wife who own an unencumbered property that they previously occupied as their main residence but which more recently has been let for some years.
They wish to transfer the property to their adult daughter who is expected in time to occupy it as her main residence. Accordingly planning to avail the husband and wife of relief under TCGA 1992 s 260 is not appropriate.
If the whole property is transferred the gain attributable to the period of occupation as main residence (including the last 18 months) is about £300 000 while that attributable to the period of letting (but excluding the last 18 months) is about £200 000. Thus given the joint ownership I believe that lettings relief of £80 000 (in total) is available on a transfer.
However to maximise the availability...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
