Commentary

C3.1707 Private residence exemption for married couples and civil partners

Capital gains tax
Capital gains tax | Commentary

C3.1707 Private residence exemption for married couples and civil partners

Capital gains tax | Commentary

C3.1707 Private residence exemption for married couples and civil partners

The Principal Private Residence (PPR) relief is given special application to spouses and (from 5 December 2005) civil partners.

Members of a married couple or a civil partnership may have only one residence or main residence between them whilst they are living together1. For cases concerning claims that a couple have temporarily separated, see Benford 2and Clarke3, discussed at C3.1704.

Nominations for married couples and civil partners

A married couple (or civil partners) can nominate a dwelling house designating it as their main residence. See C3.1704 for more on nominations4.

Transfers between spouses or civil partners

From 6 April 2020, when a spouse or civil partner transfers an interest in a dwelling to their spouse or civil partner (whether or not the dwelling is their only or main residence), the receiving spouse or civil partner inherits the transferring spouse or civil partner's ownership history including their previous use of the property5. Note that before 6 April 2020 the transferred property had to be the main residence of the transferor at the time of transfer6.

The transfer can be effected during the transferor's life, or through a will, or upon death through intestacy. The transferee can receive the property either as beneficiary or as a trustee7.

The transferee spouse/civil partner is placed in the shoes of the disposing spouse/civil partner in relation to the commencement of the period of ownership, which accordingly is antedated back to the date when the disposing spouse/civil partner acquired the

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