Civil partners with each living in their own property

My partner and I have each had our own property for many years. After our partnership was formed we continue to each live, as before, in our own respective property. It is now more than 2 years since our partnership was formed and we have not nominated which property is our main residence. (We missed the 2 year deadline by one day and the nomination was rejected.) What is the CGT situation if we wanted to sell one of the properties - particularly regarding private residence relief? Thanks

Hi ,
 

Please refer to :  CG64545 - Private residence relief: two or more residences: no valid notice made  .

Thank you .

CG64545 mostly relates to an 'individual' that has 2 (or more) properties, which is not our situation. As an example of our situation not being covered, the Frost V Feltham decision is directed by this 'In general, we are interested in evidence of changes the individual may have made to accommodate them living at the dwelling-house as their main residence.' This does not apply to our situation - we are not a single individual. We have not made any 'changes.' However there are a couple of points that do mention married/civil partners - the first one is: 1) 'If the individual is married or in a civil partnership, where did the family spend its time? Spouses or civil partners who are living together can only have one main residence between them.' Answer: We are civil partners NOT living together. Our situation appears not to be covered. (Additional info: We are retired and have no children.) The second one is: 2) 'Are there any dwelling-houses owned solely by the spouse or civil partner that also need to be considered?' Answer: This could possibly relate to our situation, but doesn't provide any guidance.

Hi,
Please have a look at CG22020, regarding beneficial ownership of your home.  
It may be a case that both of you need to submit separate form 17, each declaring  100%/0% beneficial ownership of your own respective properties.
Thank you.

Hi, I'm not HMRC but civil partners and married couples are treated as living together unless they have been separated by court order, by deed of separation or they have separated in circumstances likely to be permanent. So even if you do not own an interest in your civil partner's property, for CGT purposes you are treated as having two residences (but you only own one of them - it is similar to situatuons where you rent out a property you own while living in rented accommodation yourself). As no nomination of a main residen e was made within the 2 years then which is your main residence will depend on the actual facts. That property will be the main residence of both of you (because you're treated as living together as per the above). So if that property is the one you own, your civil partner would be liable to CGT on disposal of their property and vice versa.