When You Get Married A main residence Must Be Chosen
These days there are many older couples who have only gotten married recently, are owners of their respective house, and who do not live together. There are a number of reasons for this and often there is a problem with picking one as the main residence.
What normally happens to older couple who just got married is that their solicitor or your accountant will insist that you choose one as your main residence inside of two years of marriage. You may find it hard to believe that you have to do this but according to UK law any couple that is married or are civil partners there should only be a single property between them. This is in order for the couple to qualify for certain exemptions. Otherwise taxes will apply to each property individually.
Choosing which property to use as a main residence can be difficult but seek the advice of your accountant to help you with this. Keep in mind that you will be paying more taxes when you keep each property. Also if the court is made aware of no nominated main residence after the two year period, it will make the decision for the couple.
If both parties were to decide to sell their respective home and also claim that is the couple’s main residence the courts will want to see proof of this status. This would include them checking your tax forms to see which address is on it. Also they may check your workplace and the information you would have provided there. The home that you spend most of your time together will also be considered.
When spouses have two properties and choose one as their home the main disadvantage they have concerns capital gains tax and that arises when they are selling the other property. The tax applied will be determined on a valuation done and they are likely end up paying a higher tax rate.
To take advantage of the exemptions it is best that couples who each have their own property when they got married, nominate a primary residence and to do so with two years.
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