Readers’ forum: Tax savings on disposal of UK residential property

We have a client who is living abroad for work purposes and is therefore treated as non-resident. His wife on the other hand is in the UK and she is treated as a UK tax resident. We are of the view that they are not permanently separated as the husband intends to return to the UK once his two-year contract has passed.

They have a house which used to be their main residence but has been let for a number of years and is about to be sold. Based on the ‘normal’ capital gains tax rules the wife’s share of the gain is £53 678 after deducting only or main residence relief. On a ‘time apportioned method’ the husband’s capital gain is £34 220.

Is there any way that the wife could transfer her 50% share of the property to the husband so that...