ACCA Taxation (F6) Practice Exam

What is required for married couples regarding their main residence?

1. They must maintain multiple residences

2. They must have one main residence between them

3. Each spouse can have a different main residence

4. They must apply for a joint main residence

The correct answer is: They must have one main residence between them

Married couples are required to have one main residence between them primarily for the purposes of tax relief and benefits associated with property ownership, such as Private Residence Relief. This means they need to designate a single property as their main home for tax purposes, which avoids the complexities and complications that arise from having multiple residences recognized for tax benefits. Choosing one main residence helps streamline the process for tax calculations, ensuring that any reliefs or exemptions are applied consistently and simplifying compliance with tax regulations surrounding property ownership. In the context of married couples, this requirement reflects the household's combined financial and living arrangements for tax purposes. Other options suggesting multiple residences or allowing each spouse to have separate main residences contradict the established tax policy designed to facilitate clarity and ensure that benefits are not claimed more than once for the same household. Additionally, the requirement to apply for a joint main residence is not necessary; the main residence can be designated without a formal application process, provided the couple agrees on its classification for tax purposes.