Does a main residence election need to be renewed after marriage?
Our client was widowed a few years ago. She owns a large house in the country and a flat in London that is subject to an election for capital gains tax main residence relief. The client has now remarried and her husband has put money into the country house to improve it. There is a declaration of trust as to his share but the property remains in the wife’s name. There is a prenuptial agreement under which in essence each party gets out in capital terms what they put in.
The London flat remains in the wife’s name. Both properties are used by the couple as their homes. We are reconsidering the main residence election. We want it to remain on the London flat but understand that it must be a joint election. At present the husband owns no part of that property. Does the...
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