Malcolm Finney looks at the often misunderstood and overlooked impact of inter-spouse residence transfers.
At the time of writing, Finance Bill 2020 amends the capital gains tax (CGT) principal private residence (PPR) relief legislation in TCGA 1992, s 222(7)(a). Subsection (7) provides for a ‘back-dating’ effect (see below) where one spouse transfers an interest in a dwelling-house to the other spouse (or if such an interest passes on the death of a spouse) but only if at the time of transfer the dwelling-house is their only or main residence.
Inter-spouse transfer of an interest in a PPR
(a) Pre-Finance Bill 2020
Where an inter-spouse transfer consists of an interest in a dwelling house which at the date of the transfer is their only or main residence, the recipient spouse’s period of ownership is treated as beginning at the