CGT / PRR when Seperating

[SuziP]

In 2005 I purchased a home with my husband with joint ownership, in 2022 we purchased an addition second Home with joint ownership which I have been living in.

We are now considering an amicable judicial separation and have agreed that he will keep the first home transferred into his own name and I will keep the second home transferred into my own name, as we understand it these transfers would presently be classed as no gain / no loss for CGT.

We still have a few weeks to declare a main residence but we don't know how this decision may impact capital gains tax / primary residence relief if either of us decides to sell their individual home after the separation and transfer of properties into their own names?

[AGoodman]

As you know, you will have the original acquisition value of the whole property.

In the absence of an election, your main residence is just your de facto main residence. A married couple can only have one PPR while they are living together but you can have different PPRs once you are living apart.

So, if the first home was your de facto main home while you lived together, the second home would qualify for PPR (for you) from the date you ceased living together and it became your main home.

It sounds as though your husband will qualify for 100% PPR over the original property.

You may not need to make an election if property 2 became your main home on the day you ceased to live together (at property 1). It would just confirm it and put it beyond doubt.