HMRC internal manual

Capital Gains Manual

Private residence relief: only or main residence: deemed residence

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

  • S222(8) TCGA92 where an individual is currently living in job-related accommodation, see CG64555
  • S223(3) TCGA92 during specific periods of absence, see CG65030
  • S223ZA TCGA92 where there is a delay in taking up residence, see CG65000. S223ZA TCGA92 applies to disposals on or after 6 April 2020. Disposals before this date are dealt with under ESC D49, see CG65003.
  • S225B TCGA92 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. S225B TCGA92 applies to disposals on or after 6 April 2009. Disposals before this date are dealt with under ESC D6.

S222(8) and S223(3) TCGA92 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 be 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, see CG64545.

S223ZA and s225B TCGA92 on the other hand deem the dwelling house to be the only or main residence for a specified period. However the individual must make a claim for S225B TCGA92 to apply, see CG65356.