GRAHAM JONES
Joined: 8/9/2024
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When is a second home not a second home
Under a divorce settlement I was required to provide a home for my ex-wife and our children to live in. I have no right of access to the property and she pays no rent. After she remarried I sold the house. I accept that tax is payable on the increase in value but as it was not a BTL or holiday home can I offset the mortgage costs as an allowable expense on the basis this was an investment rather than a second residential home ? Would the rate of CGT payable be at the standard gain rate or would I have to pay the residential property rate even though no rent was passing ?