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HMRC internal manual

Capital Gains Manual

Private residence relief: only or main residence: deemed residence

In certain circumstances a dwelling house which is not a residence of an individual is treated as if was his or her residence for the purpose of computing private residence relief. These circumstances are,

  • TCGA92/S222(8) where an individual is currently living in job related accommodation, see CG64555+
  • TCGA92/S223(3) during period of absence, see CG65030+
  • TCGA92/S225B where an individual transfers the marital home or an interest in the marital home to his or her spouse or civil partner following separation, see CG65356. Section 225B applies to disposals on or after 6 April 2009. Disposals before this date are dealt with under ESC/D6, see CG65356.
  • ESC/D49 which deals with situations where there is a delay in taking up residence, see CG65003.

Section 222(8) and ESC/D49 operate by simply deeming a dwelling house to be a residence for a specified period. This may result in the individual having more than one residence during that period and where this is the case the individual may nominate which is to treated as the main residence, see CG64485. Where no nomination is made, relief will be available in respect of the residence which is the main residence as a matter of fact; the deemed residence is not automatically relieved.

TCGA92/S225B operates in the same way as Section 222(8) and ESC/D49 by deeming a dwelling house to be a residence for a specified period. However the individual must make a claim for Section 225B to apply. Section 225B applies to disposals made on or after 6 April 2009. For disposals made prior to 6 April 2009, ESC/D6 applies.

Section 223(3) on the other hand deems the dwelling house to be the only or main residence during the period of absence unless that individual has another dwelling house eligible for relief during the period.