Spouse’s transfer

A married couple acquired their main private residence in August 1986 and they lived in it until it was let as furnished accommodation from January 2008 onwards.

The property was in the sole name of the husband until a formal transfer of a 50% interest to his wife was made in June 2008.

While the private residence was let the couple lived in rented accommodation so no other property was involved. The property was sold in November 2011.

The overall gain attributable to the wife’s 50% interest in the property for the period August 1986 to November 2011 is £70 000 and as the property in question was the couple’s only or main residence I am assuming that the last three years’ deemed residence rule applies up to January 2011.

Based on the legislation contained in TCGA 1992 s 222(7)(a) and...