In a recent case an individual died, say in 2016. His home was inherited by his two daughters Alice and Beatrice. In 2018, Alice moved in the house and started living there as her main residence.
In 2020 Alice bought the share of Beatrice to own the house fully. House was finally sold in 2022.
Question 1. Since which date will Alice get the private residence relief.
Answer: Alice will get the relief from 2018 when she moved in the house’ see Hector and Miss Kitka example on Tax café website. see also HS283 – section `Who qualifies for relief ` it states You’re also entitled to relief if you jointly own the freehold or lease with someone else.
Question 2. What will be the period of ownership for Alice.
Answer: It will be 2016. As under s222(7) TCGA92, where different interests are held at different times the period of ownership begins at the date of the first acquisition on which expenditure is incurred which would have been deductible in computing any gain. see CG64930
Roy Accountants 