Private residence relief

I bought a house 40 years ago and lived there for 12 years after which I moved in with my partner and let the house. If I sell the house I understand I would be entitled to PRR for the period I lived in the property. I cannot, however, provide any proof of this period of residence as it was so long ago, although I would have been on the electoral roll at this address.

Hi Anne Perceval,
Where an individual acquires a second property or more, they have 4 years, in which to advise HMRC which property will be treated as their main residence for capital gains purposes.
Where there is no notification in the permitted time period, then HMRC will make a decision on the main residence, based soley on the facts of the case.  
This does not prevent you from claiming Private Residence Relief and your Capital Gains Tax calculation.
Should HMRC make an enquiry into your tax return, they may agree your claim or reject it, depending on the facts of your case.
Thank you. 
 

Hi can anyone tell me if you decide to gift your only private mortgage free residence, of which you have lived in from day one of purchase, what are the capital gains implications. I have read there are none given the above circumstances but after speaking to an agent on the phone suddenly what seems to be clear as day on the internet suddenly has become blurred. I would be grateful for some clarity on this matter. Thanks

Hi pipsy1212,
As it has been your only and main residence for the whole period of ownership, there will be no capital gain as full private residence relief applies.
Thank you.
 

Thank you for reply most grateful. That being the case do I need to report it to HMRC in any way shape of form when I have lodge the transfer deeds with Land Registry, they wasn't sure in these circumstances if I need to. Many thanks.

Hi pipsy1212,
As no Capital Gains Tax arises, you do not need to declare the disposal to HMRC.
Land registrty, will record the disposal and report it to HMRC.
No further action is required.
Thank you. 
 

Hi Sorry to keep asking questions. Further to the answers above it clear now the person gifting the property (if Private Residence) doesn't incur capital gains tax but what about the person receiving the property? If the person who gifts passes away how does that affect the giftee regarding the tax implications. Does the estate get taxed in the normal manner if within the 7 year period? I basically would like to know how will the tax implications affect the gifter and gifter in both the 7 year period and after the 7 period. How would it be worked out in bot scenarios. Many thanks

Hi,

A person, who gifts a property to someone, who is not their spouse or civil partner, will be subject to Capital Gains Tax. They may be able to offset some or all of the gain using private residence relief, where the property was their main residence at some point in time. If the person who gifted the property dies within 7 tax years of the gift, then the market value of the property at the time of the gift will be included in the estate for Inheritance Tax purposes. Where the gift was to their child, including adopted, foster or stepchildren) or grandchildren, the inheritance tax threshold can be increased.

Please have a look at the guidance on Inheritance Tax at:

Inheritance Tax

Thank you.