Main residence relief: the tricky bits

The definition of a residence and the duration and nature of the occupation are key concepts that need to be readily understood if unexpected tax bills are not to arise. In planning ahead, the importance of making an election and not wasting ancillary reliefs should not be overlooked. Particular issues arise where there is a transfer between spouses or ownership through trusts. HMRC is increasingly likely to raise enquiries so it is wise to compile contemporaneously and retain the evidence you may need to produce. The recently introduced rules for non-residents and some upcoming changes also need to be grasped.