A civil affair

THE BEST THINGS in life are free so it is sometimes said. The best things in tax however are often extremely complicated and fraught with pitfalls. Only or main residence relief is a good example.
With the introduction of civil partnerships and the increased frequency of second marriages there are some issues with the relief which are worth a reminder. The unwary could slip up in several areas. Statutory references are to TCGA 1992 unless otherwise stated.

Inter spouse transfers

In 2005 regulations were introduced so that with effect from 5 December 2005 the rules applying to spouses apply equally to the parties in a civil partnership. Under the provisions of s 58 lifetime transfers between married couples and parties to a civil partnership do not trigger a gain. On a future disposal by the transferee the combined period of...