Readers' forum : Ownership issue

I act for a married couple who are looking to sell the former marital home. The property was purchased in the husband’s sole name and was occupied for several years as their only or main residence. After moving out the property was let and during that time it was transferred into joint names.

I believe that the wife’s share of the capital gain is not eligible for either the main residence or lettings reliefs because it has not been her main residence during her period of ownership. She is unable to pick up her husband’s ownership period under TCGA 1992 s 222(7)(a) because the property was not their main private residence at the time of the transfer.

My proposal is that the majority of the wife’s share should be transferred back to the husband leaving her with a gain sufficient to use her annual allowance. The whole...