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HMRC internal manual

Capital Gains Manual

Private residence relief: period of ownership: transfer between husband and wife or between civil partners

TCGA92/S222 (7) (a) & (b)

If a residence is transferred between a husband and wife who are living together or between civil partners of each other who are living together, whether by sale or by gift, the period of ownership of the transferee is treated by TCGA92/S222 (7)(a) as beginning at the beginning of the period of ownership of the transferor. This also applies where the residence is transferred from one to the other on death.

This provision only applies for the purpose of computing private residence relief. It has no effect on the computation of the gain which arises on any disposal by the transferee spouse or by the transferee civil partner.

The following conditions must be fulfilled.

  • The husband and wife or the civil partners must be living together, as defined by ITA07/S1011, see CG22070, and the residence must be their only or main residence at the date of the transfer. If the residence passes from one to the other on the death of either of them they must have been living together and the residence must have been their only or main residence before the death of the transferring spouse or civil partner.
  • The extended period of ownership is subject to the limit of TCGA92/S223 (7) for the purpose of computing the relief due on any subsequent disposal, see CG64940-CG64943.