CGT residence relief

CGT residence relief

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In thirty years of working in tax I can't believe that no one has ever asked me this question before.........

Husband and wife have jointly owned their house for thirty years.
Husband is no longer able to look after himself and intends to move in with daughter who some distance away.
The wife has been in a nursing home for seven years now.
To my mind it seems that as the house will have to be sold the wife will be entitled to PPR of gain divided by 30 and X (23+3). Which leaves 4 years chargeable?
Obvious solution is for wife to gift her half share before property goes on the market but that means additional fees.

So, have I got it wrong or are there any other obvious solutions and why has the question never arisen before?

Nigel Fisher

Edit PS yes I realise that the question covers a period before 31st March 1982 but can we ignore that!

Replies (3)

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By User deleted
15th Feb 2008 16:47

Have they separated?
Just another query to throw in the hat, have the couple actually separated due to the wife having to move into the Nursing Home? If not, isnt it true that a Husband and Wife cannot have more than one PPR?

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By spike418
15th Feb 2008 15:11

Agreed in part
Thank you for your response Stephen.
My understanding of the legislation is that the period of absence which attracts relief is capped at 3 years. I did think lettings relief may also be a possibility.

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By AnonymousUser
14th Feb 2008 11:28

Private residence exemption
Is not the simple answer that unless she has another residence or main residence that would qualify for relief as a ppr on its disposal then the period of absence is not deemed to be a period of absence? I assume she has or legal interest in the nursing home either as freeholder or leaseholder consequently the proviso in s 223 (7) TCGA 1992 covers the pointl

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