My husband and I bought a house in 2000, and we lived in it as our main family home until 2011, when we rented it out. We live in job-related accommodation as armed forces. In 2011, the property was transferred into my sole ownership as I don't work, so I would therefore benefit from no tax being paid on the rental income. We are now considering selling the property. Can I claim private residence relief (including lettingsrelief) on the entire profit?

Arthur Weller replies:
If you were still living in it in 2011 as your main residence when your husband transferred his half to you, you take over his principal private residence (PPR) history on his half of the property, and you can claim PPR and letting relief for the whole property (see HMRC’s Capital Gains manual at www.gov.uk/hmrc-internal-manuals/capital-gainsmanual/cg64950). However, if he transferred to you in 2011 after you moved out of the property, then for PPR purposes your ownership of his half starts from 2011, and therefore you have no PPR relief on his half.