In a recent tribunal case (MJ and BA Harte (TC1951)), a gentleman inherited a house from his father in 1992. In May 2007 he transferred a half share in the property to his wife, and in October of the same year the property was sold.
The couple claimed Principal Private Residence relief (PPR) on the property sale even though they had another home during this period. Their claim was based on the fact that they had intended to make the inherited property their home, but had only ever spent brief spells there.
The Tribunal found that their spells in the house did not add up to occupation, and it could not have been their home because they did not transfer any possessions.
Furthermore the appellants did not permanently vacate their original residence, so their original home remained their principal private residence. A married couple can only have one PPR at any one time.
The claim for PPR was therefore denied.