I was talking to some new clients recently about their homes. Because they work in different locations they have two homes, one in each city and live interchangeably in both of them. This works well for them (midweek home alone in separate locations he watches sport and she watches costume dramas!) except for tax. Because they choose to be married they only get an exemption from capital gains tax on one property not two. If they were unmarried they could get two exemptions. That isn’t fair – but tax is rarely fair.
There’s tax planning we can do to soften the blow (call me if you want to know more) but we can’t get rid of the problem.
William and Kate will probably have several homes – one in London and one in Anglesey for a start but it sounds like they’ll be spending most of their time on Anglesey to start with. If they own a London home but live there less I hope someone’s doing their tax planning for them!
After all they’ve got a lot of other things on their minds right now!