An MR element includes an MR part and upper and lower shield layers in a CPP structure. The MR element has side shield layers so as to interpose the MR part between the side shield layers in a track width direction. The MR part comprises a nonmagnetic intermediate layer and first and second ferromagnetic layers so as to interpose the nonmagnetic intermediate layer between the ferromagnetic layers. Each of the upper and lower shield layers has an inclined magnetization structure such that its magnetization is inclined relative to the track width direction. The side shield layers are magnetically coupled with the upper shield layer, respectively. The second ferromagnetic layer is indirectly magnetically coupled with the lower shield layer via an exchange-coupling functional gap layer. The side shield layer applies a bias magnetic field to the first ferromagnetic layer; and magnetizations of the first and second ferromagnetic layers are substantially orthogonal.