PPR for separated couple

PPR for separated couple

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I have a client who has recently disposed of a property which he bought several years ago when he separated from his wife. He lived in this house for six months, but never elected for the house to be his main residence (he was not a client of mine then!). At this time he also owned a house with his wife.

After six months of living at the new house, my client bought total ownership of the original home, and the wife moved out. The new house was then rented out until disposed.

By claiming that the new house was his private residence for this small period of time, additional relief would become available for the period of letting, hence, reducing the capital gain significantly.

I am aware that you can only have one main residence between a married couple, however, the rules in respect of separated couples are sketchy.

Does anyone think that the new property could be deemed to be my client's main residence for this six month period when he left his wife? Do you think he would stand any chance in an investigation with HMRC?

I would appreciate any comments!

Thank you
Ceri

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