CGT & Dependent Relative Relief

The circumstances are:

  • Husband buys the matrimonial home in his sole name in 1982
  • Husband moves out in 1992, but the (separated, but never divorced) wife continues to live in the house, with the husband paying the bills
  • Wife dies in 2011 and husband sells house

My immediate thought was that he can have only (10 + 3)/29 of the gain tax-free under the private residence relief because although still man and wife, they were no longer living together and hence, he did not have the same private residence from 1992 to 2011.

Then, I remembered something called Dependent Relative Relief which was abolished long ago (actually turned out to be from 6th April 1988), but was in force in 1982 when the house was bought.  Although husband and wife were living together in 1988, did she subsequently become a dependent relative in 1992 and if so, is the husband entitled to have the entire gain tax-free?  I think that although "dependent" financially, the separated spouse was not incapacitated or elderly, so probably did not meet the definition of a "dependent relative", but I would be grateful if anyone could contradict me.

Comments
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TaxationPete |

Isn't it a settlement?

Steve Kesby |
Steve Kesby's picture

Dependent Relative Relief

thomas34 |

Euan I agree with you that

LyneT |
LyneT's picture

I was thinking more along the lines...

Steve Kesby |
Steve Kesby's picture

Thank you, everyone

Euan MacLennan |
Euan MacLennan's picture

I've reached a similar conclusion

Steve Kesby |
Steve Kesby's picture

I have to say I had not

LyneT |
LyneT's picture