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HMRC internal manual

Capital Gains Manual

Private residence relief: deemed not a residence: residences in another territory - introduction

The guidance at CG73700 onwards explains that from 6 April 2015 gains on the disposal of interests in UK residential property by non-resident persons were brought within the charge to Capital Gains Tax.  At the same time changes were made to the rules that apply for Private Residence Relief.  These changes apply to both UK residents with interests in non-UK dwellings as well as non-UK residents with interests in UK dwellings.

The main effects of the changes were that where:

  • a residence is only eligible for relief for a year if it is located in a territory in which the individual is not resident (see CG64577)  if an additional day count test is met (see CG64582). 
  • a person is within the charge to non-resident Capital Gains Tax (NRCGT) the nomination can be made in the NRCGT Return.


For individuals that remain resident in the UK and only have interests in residences in the UK, the new rules have no impact.

It is possible that an individual who is not resident in the UK only has an interest in a residence in the UK.  Such cases are likely to be very rare.  In this type of case the new rules will determine if private residence relief is available.