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HMRC internal manual

Capital Gains Manual

Private residence relief: deemed not a residence: residences in another territory: non-qualifying tax years

TCGA92/S222B

 

To be eligible to be nominated as the main residence it follows that a property must be occupied as a residence. From 6 April 2015 a property is treated as not occupied as a residence for a tax year that is a non-qualifying tax year (or non-qualifying partial tax year).

 

For an individual a tax year is a non-qualifying tax year if:

 

  • The individual is not resident in the territory in which the residence is located (see CG64580) and
  • The individual does not meet the day count test see CG64582

 

Where a nomination under s222(5) has been made previously in respect of a property that is located in a territory in which the individual is not resident, the nomination would lapse for any year after 6 April 2015 where the day count was not met, but otherwise it would continue to endure. (TCGA92/S222(6A)).

If the nomination was for a property in another country and that nomination lapsed because the day count was not met for that property, there would be a change in the combination of residences and a new nomination could be made in favour of a different property see CG64495.

 

Examples

If Mr A is a UK resident and on or after 6 April 2015 he acquires a residence in France, the residence in France can only be nominated for a year (or part of a year) if the day count is met.

 

If Mr A had acquired and nominated his residence in France to be his main residence prior to 6 April 2015 the effect of the nomination would only endure after 6 April 2015 for any year in which the day count was met.  If the day count was not met for say 2016/17 but was met for 2015/16 and 2017/18 and later years.  The original nomination would only lapse for 2016/17.  The main residence for 2016/17 would be determined as a matter of fact.

 

If Mr B is resident in France he can only nominate a residence in the UK if he meets the day count.

 

Any nomination by a UK resident must be made within the time limits detailed in CG64495+.

For a non-resident liable to NRCGT the nomination can be made following disposal on the NRCGT return. TCGA92/S222A(6).