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What can be deducted from the sales proceeds to calculate the chargeable gain for a house sale? I assume legal fees of buying and selling the house, stamp duty, estate agent fees can. But what about mortgage interest, mortgage arrangement fee and surveyors to test property before sale?
Also I was wondering what happens regarding Private Residence Relief (PRR) when there are 2 properties owned. I know only one house can be ‘collect’ the relief at a time and would be nominated. However if House A was nominated and lived in between say 1995 and 2005 but sold in 2010 would it still qualify for 10 years of PRR (in respect of 1995 to 2005) even if it was not the currently nominated house for PRR (i.e. House B had been nominated from 2005 onwards)?
Further in a similar scenario how would PRR be treated in a case where 2 single people that each owned a house prior to marriage got married and only 1 house can now be nominated for PRR. Would both houses qualify for PRR for the periods prior to marriage but with only one house gaining further PRR from the date of the marriage onwards?
Thanks in advance for any advice.
Expenses attached to the purchase and sale of the property will be deductible in determining the chargeable gain as per those you list plus surveyor’s expenses should be ok though finance expenses such as mortgage interest would not.
If House A was the taxpayers’ PPR then it would remain so until, within 2 years of acquisition a second property purchased is then notified to HMRC as being the PPR. When House A is subsequently sold it will still have the PPR relief for the period until it ceased to be the PPR of the taxpayer
In respect of the marriage it would be exactly as you suggest.
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