Is BADR available for spouse?

50% of a qualifying FHL has been transferred to the spouse in the last year.

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50% of a long established FHL has been transferred from the husband to the wife in the last few months prior to a sale of the property.  The husband meets the conditions for BADR (i.e. it has been a qualifying FHL for over 2 years) on his 50%.  My understanding that the wife is not eligible for BADR as she has not owned the FHL for the qualifying 2 years.  However a HMRC CGT inspector (via the agent helpline) has just said the wife inherits the complete history including the right BADR.  Have I misunderstood or have HMRC got it wrong?

Many thanks for your thoughts.

Replies (4)

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By Ruddles
27th Oct 2023 15:36

I suspect that the Inspector (sic - I doubt that anyone of that grade will be (wo)manning the helpline) is confusing PPR with BADR. In any event, they are wrong - @Cherry.Picker, I hope you are watching.

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Replying to Ruddles:
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By Mags21
27th Oct 2023 16:50

Thanks. The person manning the phone on the CGT technical desk went off to check with 'the inspector'. I queried the answer as all the research I have done suggests otherwise.

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Replying to Mags21:
By Ruddles
27th Oct 2023 16:58

As wrong as they may be, if you are able to obtain that advice in writing I might be minded to make a claim, with appropriate white space disclosure.

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By Software Seeker
27th Oct 2023 16:10

I thought there was something which said that the transferor's period of ownership of qualifying shares could be transferred to the transferee in some circumstances for BADR purposes. I know not the same context as in your question (and my memory might also be playing games) but might be worth just checking.

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