Issue with Houses following Marriage

Sobeboy15

I seem to be getting myself in a muddle over our tax liabilities following our marriage. 

Background to my issue

Sept 2020 I married my husband and at that point I had my PPR and my husband had two properties one of which was his PPR and a secondary flat he occasionally used and acquired following probate when he was widowed (flat was in his husbands name only).  He sold the flat in Sept 21 and the sale value was not much more than probate value so there was no capital gains to pay.  We reported this sale within the 60 day time limit.  

We are now looking to sell his PPR and for him to move into my house.  When we sell his house there may be significant gains is he able to use any of his husbands allowance towards reducing the overall gain?  At the time of his husbands death do we use that value to calculate the house  value or is it from when he acquired the house ?  This may significantly reduce the gain. 

We also haven’t elected our marital PPR and am unsure how we do this.  Can anyone point me in the right direction. 

We are not looking to evade our tax liabilities we want to minimise the tax we may have to pay.  

Any insight would be greatly appreciated. 

Many Thanks 

Jeremy535897

You need to be clearer on the facts. Married couples have only one main residence. Which property was regarded as the main residence in the first marriage? Was it the one he owned or the one he inherited? Until the death, were the two houses solely owned by each party to the marriage?

Keep_pedalling

Assuming your husband moved in with you on marriage then his PPR switch to your house then, but the gain he achieves on the sale of his former home will not attract a CGT liability for the whole gain as he will be able to apply PRR relief to that gain, so in all likelihood there will be little or no tax to pay.

https://www.pd-taxconsultants.co.uk/private-residence-relief-are-your-periods-of-absence-eligible/