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Spousal property transfer and PPR

Quality of occupation required for spouse?

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This is a question about the quality of residence for a spouse who receives a gifted share of her husband's soley owned property.

Husband owns a second home - bought as a London pad many years ago in sole name; he and wife bought another matrimonial home jointly soon after; they never elected a main residence;  he later let London pad for couple of years but it's now reverted to use as second home and is in time for a main residence nomination.

Plan (a)

this could be a fab opportunity to wash out 100% of the gain on transfer to wife followed by nomination as main residence, but wife will not contemplate making London flat a sustainable regular home for her, though it is for him.  Is that enough?

I understand that HMRC considers the married couple to be a single unit for main residence purposes.  How much does his wife's only occasional use taint joint main residence relief claims if

  1. 100% of  the home is transferred to her followed by a PPR nomination (then a flip) or
  2. say 20% (due to property being mortgaged) is transferred to her


Am I seeing problems where they don't exist, because husband can evidence regular quality of use as a main residence home by him (though not by her).



Plan (b)  Last 18 months and letting relief.

Interesting difference in view over letting relief.  Many commentators write that it is available if a property has first been owned and used a main residence before letting.  I disagree; I understand it is available if the property has been a main residence at any time and a gain arises during a let period.  So I don't need to resort to the extra statutory concessions which could help client secure an out of time nomination for the early years of ownership and residence (his circumstances appear favourable)

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