Private Residence Relief following death of partner

Hello, Apologies for the slightly wordy question, I figured having more information than less would allow anyone to provide a better answer! My mother in law just sold her house and isn't sure if she needs to pay any CGT on it. I understand the basics of PRR, however her situation is a little strange so was looking for some advice. I'm working off the below scenario - note that I'm aware thats costs / fees such as estate agents can alter things slightly, but I'm ignoring them for simplicity. - House purchased 241 months ago (Feb 2004) with her owning half and her husband the other at a total cost of £164,000 - Husband died 70 months ago (May 2018) and his half of the house was transferred to his son and two step children (actioned a couple of months after his death). No value was taken as he was well below the inheritance tax threshold (and I doubt anyone even thought of it), but based on the house price index I estimate the value was £225,000 - Mother in law moved out 39 months ago (Dec 2020) - Hold sold last month (Mar 2024) for £290,000 In my mind her gain is (£290,000 - £164,000) / 2 = £63,000 (since she's always only owned half the house). She's owned the house for 241 months, lived there for 202 and gets 9 months grace at the end of her time for a total of 211 occupied months. So her relief would be 211/241 x £63,000 = £55,158 therefore she'd have to pay CGT on £63,000 - £55,158 = £7,842. What I wanted to check is whether the death of her husband makes any difference to this calculation. In the above I've considered values and her period of ownership based solely on when the house was originally purchased and sold. Due to the death of her husband does this need to be split in two - ie. there's one gain calculated for the period between Feb 2004 and May 2018 and another between May 2018 and March 2024)? Thanks!

Hi,

As she has only ever owned half the property then you will take half the sale price and purchase price as her share.

The loss of her husband does not affect her figures, however, this will have a bearing on the Captical Gains Tax due for the half that was left to his son and step children.

Thank you.