Hi all,

I currently have a 25/75 beneficial ownership split with my wife on a property that I am planning on selling. I am the sole legal owner and there is a mortgage under my name. I lived in the property as my main residence from 2002. It has been rented out since 2009.

The ownership split has been in place since 2016 and we have been filing tax returns on this basis. I understand for CGT purposes my wife inherits my acquisition cost but does not inherit my private residence relief (PRR) on any capital gain. Is this correct?

I would like to clarify whether HMRC would accept a beneficial ownership change prior to the sale of the property that effectively allows the PRR to cover a greater proportion of the capital gain.

Is there a minimum period the updated beneficial ownership would need to be in place before the sale of the property? Or would submission of the updated beneficial ownership to HMRC prior to exchange of contacts be acceptable?

Thanks for reading and sharing your views.