Scenario as follows - timeline :
2000- Mr A buys House . lives in as PPR as a single person .
2010 - Mr A buys a Bungalow moves in as new PPR , and lets House
2015 - Mr A meets and marries Mrs A and they both live at Bunglaow
2020 - Mr A is consdering gifting 50% of House to Mrs A . (no gain no loss no CGT , no mortgage so no SDLT)
My query concerns CGT on an eventual sale to a third party :
If the House stays in Mr A's sole name I think its quite clear he will get 10 years worth of PPR on whole gain, plus final 9 months so just over half the gain PPR as it stands .
But what happens if he gifts it and they later sell jointly . Does Mrs A get any PPR .? bearing in mind that she has never lived there .
I am reading section 222(7) TCGA 1992 and this would indicate in para (1) that for her to get any PPR the , the transfer must be a propery which is his PPR . (note the word "is" , not "was" or "has been" )
It is not his PPR at time of transfer of half to Mrs A , so I think the answer is if he gifts half to her , then if they sell later , on eventual sale he gets PPR on 10 years of occupation on his half share , but she gets no PPR at all .
There is a significant gain at stake here
a sanity check on this would be welcome thank you