When can you claim PPR Relief on more than one property?

9 Feb 2021 | Lisa Pepper
london houses

Family lawyers are familiar with ‘Mesher Orders‘ where the court orders that as part of the financial settlement on divorce, the family home is transferred into a Trust for a limited period – usually until the youngest child finishes secondary school. One spouse remains in the property with the children.

PPR Relief

Principal Private Residence (PPR) is tax relief on Capital Gains Tax whilst the property is in the Trust. Whilst one beneficiary is living in the property, the other beneficiaries can use PPR relief on another property, AND not be caught by PPR on the Trust property whilst the trust is in existence. This applies whether the property under trust was created by a Mesher Order or otherwise.

There is a potential CGT charge on the spouse not occupying the property after termination of the Mesher Order and sale of the property, rather than from the time of creation.

Thanks to Paula Jeffs and Nigel May of MacIntyre Hudson for their Tax Talk.

Share this article

Contact

Insights about Divorce Financial SettlementsVIEW ALL

  1. 6.5.2022

    My ex has cut me off during divorce

    Unfortunately, it is far too common that when a client says it’s over, their spouse with the “purse strings”...

    Read more
  2. 6.5.2022

    How the Court views loans from parents during...

    A frequent issue in financial divorce cases is a loan from a spouse’s parent, often to pay legal fees,...

    Read more
  3. mesher order house
    5.5.2022

    Mesher Orders Explained

    What is a Mesher order? A Mesher Order allows the sale of the family home to be postponed in a...

    Read more
  4. 11.4.2022

    Divorcing couples reaching financial settlement through Private FDR

    The Runaway Advantages of the Private FDR Our specialist lawyers are keen to ensure our divorcing clients achieve cost-effective outcomes...

    Read more
  5. 9.12.2021

    Negotiating financial settlements in divorce

    Costly and acrimonious divorces: a lesson in what not to do  If you’re determined to pursue your financial claims...

    Read more
  6. squirrel hiding assets
    16.11.2021

    Uncovering hidden assets in your divorce

    Hiding Assets During a Divorce As part of your divorce, you and your ex will have to agree on how...

    Read more
  7. 9.11.2021

    I helped build my spouse’s career

    What is the impact on our divorce settlement? It’s been almost two years since The Da Vinci Code author...

    Read more
  8. 9.11.2021

    6 cases that shape your divorce settlement

    Part of what makes our divorce lawyers experts in their field is knowing what way a judge is likely to...

    Read more
  9. 27.4.2021

    Divorce in your 60s – The Financial Implications

    How common is a divorce in your 60s? The latest divorce figures from the Office of National Statistics (ONS) show...

    Read more
  10. 18.2.2021

    Tax implications for divorcing couples

    As the end of the Stamp Duty holiday looms on 31 March 2021, that is not the only deadline that separating and...

    Read more
  11. london houses
    9.2.2021

    When can you claim PPR Relief on more...

    Family lawyers are familiar with ‘Mesher Orders‘ where the court orders that as part of the financial settlement on divorce,...

    Read more
  12. father with child
    6.4.2020

    Setting aside a financial remedy order

    What has been the impact of the coronavirus pandemic on financial remedy orders? Can you do it at all? Barder...

    Read more
  13. family in poppy field
    24.3.2020

    Divorcees could appeal financial settlements if they lose...

    Billions of pounds have been wiped off shares as uncertainty builds amid the coronavirus crisis, but what does this mean...

    Read more
  14. man and women at a table
    4.9.2019

    Financial Cases on Divorce – The Resurrection of Calderbank...

    When a couple divorce, they are encouraged by the Courts to consider other dispute resolution options such as mediation: before...

    Read more
  15. gold padlock
    20.8.2019

    Help! I’m divorcing but want to protect...

    The number of self-employed workers in the UK is on the rise, with almost five million of us choosing to...

    Read more
  16. divorced man with empty wallet
    13.8.2019

    How the Insolvency Act works in divorce

    The case of Hayes v Hayes (2012) EWHC (Ch) (Chancery Division (23.03.12) (unreported presently) is one of the first cases to give...

    Read more
  17. piggy bank
    13.8.2019

    Managing Finances When Divorcing

    Divorce Day Believe it or not, January is considered divorce season among solicitors and lawyers. There is even a phenomenon...

    Read more
  18. 25.3.2019

    Self-Help in Financial Remedy Proceedings

    One of the first things we explain to clients who are getting divorced is that, when it comes to financial...

    Read more

VIEW ALL