main residence test

[Christopher Brogan]

Wife owns property in sole name in which she lives with her husband. This is being sold and simultaneously they are both buying in joint names a new main residence. In the meantime the husband inherited a property and transferred it into his sole name but this is also being sold but not before the sale and purchase of the main residences takes place.
Will the main residence exemption apply even though the sale of the main residence is solely in the wife’s name?

[AJ Mussell]

Christopher, yes the main residence replacement exemption will apply because para 3(6)(b) Sch 4ZA recognises that the sale of the old main residence can be by one spouse only as long as they were living together.

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