(1)If at any time during the period mentioned in section 1035(1) the shares were transferred to the seller by a person (“the transferor”) who—
(a)was then the seller's spouse or civil partner, and
(b)was then living with the seller (see section 1116),
any period during which the shares were owned by the transferor is treated for the purposes of section 1035(1) as a period of ownership by the seller.
(2)But subsection (1) does not apply if at the date of the purchase the transferor is alive but is no longer the seller's spouse or civil partner living with the seller.
(3)If the seller became entitled to the shares under the will or on the intestacy of a previous owner, or is the personal representative of a previous owner—
(a)any period during which the shares were owned by the previous owner, or the personal representatives of the previous owner, is treated for the purposes of section 1035(1) as a period of ownership by the seller, and
(b)section 1035(1) has effect as if it referred to three years instead of five.