Malcolm Finney examines how the CGT rules apply to the disposal of a dwelling when an individual is resident in a care home.
For the purposes of this article, it is assumed that the only or main residence is owned by both spouses jointly (whether as beneficial joint tenants or beneficial tenants-in-common).
Background
A capital gain arising on a disposal of a dwelling-house which, throughout the period of ownership (apart from the last nine months: TCGA 1992 s 223(1)), has been an individual's only or main residence, is an automatically exempt gain (TCGA 1992, s 222). There is no requirement in such circumstances to disclose the gain on the capital gains tax supplementary pages (SA108) of a self-assessment tax return (SA900).
Married couples
Married couples (i.e. spouses who live together) are entitled to only one residence or
