I have a client who bought a flat back in August 2006 that she used as her private residence until December 2008. During this time, her partner was in the military and would stay with her when he was off duty. To my knowledge, he had no other private residence during this period.
The property was then let and has been ever since in my client's sole name. During this period, the pair have married and my client is now looking at selling the property. She is looking at putting the property into joint names in order to possibly split the CGT liability.
My client will be entitled to PPR relief for the period she lived there, along with relief for the last 18 months of ownership. She will also be entitled to £40000 of letting relief.
My query is with regards to her husband. I understand that the transfer will be no gain/no loss and he will effectively acquire half the acquisition and enhancement costs. Would he however be able to claim any PPR relief for when he stayed there when my client first bought the property, and therefore would also be entitled for relief for the final 18 months, or does this only apply to periods after the transfer is actually made? I assume he only acquires half the acquisition and enhancement costs rather than the property use history and therefore would not be entitled to any letting relief.
Many thanks for any contributions.