CGT on inherited property

[Mebmate]

Hi,

In May 1995 my fiancée and I bought a property and lived in it as our principal primary residence.
The property title and mortgage were in her name only.
In July 1995 we were married and the property title and mortgage remained in her name.
She died in February 2004 and I continued to reside there.
In May 2007 my new fiancée and I purchased a property and lived in it as our principal primary residence.
The property title and mortgage are in our joint names.
In July 2007 probate was finally approved and the first property title and mortgage were transferred to me.
I intend to sell the property in early 2017.

Will CGT be based on the original purchase date (May 1995) or the inheritance date (July 2007)?

 

[Jeffrey Shaw]

Presumably July 2007, on the basis that CGT does not apply to one's only or main home- which the house was, until that date.
But verify this from your own Accountant or tax adviser.

But why the gap from the February 2004 death to the July 2007 Probate? That seems a remarkably long delay.

 

[Mebmate]

Thank you for your guidance; I will get further confirmation from my accountant.

I have an associated question which is as follows...

If I buy a third property can I minimise CGT further by...
1. Change my primary residence to the first property
2. Sell the first property
3. Change my primary residence to third property
4. Sell the third property
5. Change my primary residence back to the second property

By the way, the probate delay was due to an over complicated will which took 3 years for all the beneficiaries to resolve with the executors.

 

[Jeffrey Shaw]

Thank you for your guidance; I will get further confirmation from my accountant.

I have an associated question which is as follows...

If I buy a third property can I minimise CGT further by...
1. Change my primary residence to the first property
2. Sell the first property
3. Change my primary residence to third property
4. Sell the third property
5. Change my primary residence back to the second property.

As before, I think that you need to verify the answer to this from your own Accountant or tax adviser. It's not really a Conveyancing question with which I can assist- sorry.