tonywooding
11-07-2006, 12:19 PM
Dear Sir
I bought my flat in London in 1991, lived in it until 1996, and have rented it out ever since. From 1997 to 2000 I worked abroad during which time I got married. I came back to the UK in 2000 but, because my job back in the U.K was in Oxford, and because I now had a family of four, I was unable to re-locate back to the London property. I therefore rented for a year in Oxford, and then bought a second property whilst keeping the London flat. I transferred the London flat into joint names with my wife in 2001, for rental income tax purposes.
Can someone please advise me on the following -
1.Given the circumstances, can I still claim Private Residence Relief on the London Property for the period I worked abroad (without having to live in it again at some time in the future)?
2.Can I claim Private Residence Relief on the London property for the year I rented in Oxford (prior to buying the second property)?
3.Considering my wife has never lived in the London property, although it is now in joint names, when we come to sell the property is she entitled to the same reliefs in the same quantities as myself, most particularly Lettings Relief and Private Residence Relief?
4. If she’s not entitled to the same reliefs as me, and I therefore choose to transfer the London property back into my own name prior to selling, does the fact that she has at some time joint owned the property with me, affect the reliefs I can claim?
Thanks
Tony Wooding
I bought my flat in London in 1991, lived in it until 1996, and have rented it out ever since. From 1997 to 2000 I worked abroad during which time I got married. I came back to the UK in 2000 but, because my job back in the U.K was in Oxford, and because I now had a family of four, I was unable to re-locate back to the London property. I therefore rented for a year in Oxford, and then bought a second property whilst keeping the London flat. I transferred the London flat into joint names with my wife in 2001, for rental income tax purposes.
Can someone please advise me on the following -
1.Given the circumstances, can I still claim Private Residence Relief on the London Property for the period I worked abroad (without having to live in it again at some time in the future)?
2.Can I claim Private Residence Relief on the London property for the year I rented in Oxford (prior to buying the second property)?
3.Considering my wife has never lived in the London property, although it is now in joint names, when we come to sell the property is she entitled to the same reliefs in the same quantities as myself, most particularly Lettings Relief and Private Residence Relief?
4. If she’s not entitled to the same reliefs as me, and I therefore choose to transfer the London property back into my own name prior to selling, does the fact that she has at some time joint owned the property with me, affect the reliefs I can claim?
Thanks
Tony Wooding