Readers’ forum: Only or main residence relief on connecting properties

Capital gains tax

My retired client owns jointly with his wife a townhouse in London which has been their main residence since acquisition. They also have a licence to occupy an overseas property owned by an offshore trust which they use for holidays for about five weeks a year and is not thought to affect the London property qualifying as their main residence for the purpose of TCGA 1992 s 222. There is no election under s 222(5).

The third floor of the London property currently connects with a flat in the house next door which is divided into four flats. My clients use this flat as domestic offices and other accommodation but all forming part of their overall residence and it has never been let while in their ownership. The flat is easily adaptable as a self-contained flat having access from within the house and also from...