All the time you remain living in the main home, you will not need to pay capital gains tax and will be able to claim principal private residence relief (PPR) (assuming you have always lived in the home).
If one or both of you move out of the property before it is sold, part of your profit may be subject to capital gains tax. All the time you were living in the property the above applies. Once you move out into another property, the family home is no longer your main residence and if sold may incur a capital gains tax liability to the person who has moved out.
Until 5th April 2020, there is an additional 18 months applied to the property once you move out which, if sold in this period, can still be claimed as PPR. However, from 6th April 2020, this period is being reduced to 9 months. This means that if the person who moved out of the property still owns a stake in the property after 9 months (if sold after 06/04/2020), they may have a capital gains tax liability on the sale of the property.
Please always seek professional advice before taking any action. We are happy to answer questions in future issues. Please send your questions through the contact us page on our website: www.champconsultants.co.uk
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