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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Private residence relief: separation, divorce or dissolution of civil partnership: introduction

This section explains what relief is due on the transfer of an interest in a dwelling house between a husband and wife or between civil partners when the dwelling house has been used as their only or main residence and the transfer takes place following their separation or divorce or the dissolution of their civil partnership.

The following rules apply where the husband and wife or where civil partners are living together.

  • The transfer of any asset between them takes place for such consideration as will ensure that neither a gain nor a loss accrues, see CG22200+.
  • A husband and wife or civil partners who are living together can have only one only or main residence between them, TCGA92/S222 (6).
  • If a nomination under TCGA92/S222 (5) affects both husband and wife or both civil partners it is to be given by both, see CG64520.
  • Special rules apply when a residence is transferred between a husband and wife or between civil partners who are living together, or when a residence is left by one to the other on death, see CG64950+.The treatment of transfers between a husband and wife or between civil partners is different when they are permanently separated. In summary the main provisions are

  • a transfer of an asset which takes place after the end of the year in which separation occurs will take place at market value, see CG22500+
  • a husband and wife or civil partners who are separated are each entitled to relief on their own only or main residence
  • if either of them has more than one residence they are separately entitled to make nominations under TCGA92/S222 (5), see CG64485+.