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InI bought an investment property jointly with my former wife. The property was subject to a long-term lease. Inwe separated and I negotiated a lease termination so that I could move cgt casino the investment property. From untilit was my principal place of residence. Inthe property was placed into my name in accordance with our divorce property settlement authorised by Family Court orders. I am considering selling cgt casino property within the next 12 months.

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The fact that the property was initially leased out means that it is subject to CGT. The capital gain will be apportioned between the number of years it was leased and when it became your principal residence in Clams casino net you received your wife's share of cgt casino property, since it followed a Family Court order, you also received her cost base as the spouse giving the asset is not subject to capital gains tax on the transfer.

Your solicitor should have made sure this was taken into account when the value of assets was calculated. My husband and Cgt casino bought a flat in the city in and we moved in from our previous home in the suburbs two weeks after settlement. The idea was to rent out the old house and to live permanently in the city. After about six months we decided to move back to the old house, while our daughter stayed in the flat. Inwe started renting out the flat.

Can we still claim the flat as our "principal residence" for CGT purposes if we sell the flat now? If not, what is our CGT liability? The old house, in which we still live, was bought before September Since your old house is a pre-'85 asset, it is not subject to CGT.

Your new house, bought afteris only exempt from CGT if you claim it as your principal residence. The flat became your principal residence in but cgt casino you moved back to your old home. When you move out of a principal residence, you can retain the CGT exemption for up to six years, providing you claim no other.

If you then move back during that time for another three months or so, you can extend the exemption for another six years and cgt casino on. If you can argue that the flat was your principal home inwhen you began cgt casino it, then you have until to either move in again, and get another six-year exemption, or sell it. Otherwise, it is subject cgt casino CGT.

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