Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

Options: only or main residence

In law, the grant of an option over land in the UK creates, in the hands of the grantee, an immediate equitable interest in the land. Accordingly, the grant of an option over land in the UK is a disposal of an interest in that land. This analysis is not affected by the regime in Section 144 which provides special computational rules for dealing with options.

Where in exchange for consideration a person grants an option to purchase

  • all or part of a dwelling house which has been that persons only or main residence, or
  • any part of the garden or grounds of that residence which falls within the permitted area

private residence relief will be due, see CG64605.