My husband purchased a property in 2006, which he has never lived in but was rented to my mother. During this time my husband has lived at my address (this mortgage is solely in my name) where he has contributed towards the household bills. Following my mother’s death, he has now sold his property. As he only ever owned one property (although as I stated he has lived with me at my property) is he still liable for capital gains tax (CGT) on the profit he has made?

Arthur Weller replies:
Unfortunately, he is liable to CGT on the sale of this house, as is the case with any investment property. Since he never lived in the property himself, it is no different to any other investment property. The fact that (a) it is his only property, and/or (b) it was rented to his mother-in-law, does not help to reduce his CGT liability.