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HMRC internal manual

Capital Gains Manual

Private residence relief: deemed not a residence: residences in another territory: interaction with absence reliefs

Non-UK resident for year in which the disposal is made

Up to 5 April 2015 if an individual was non-UK resident a charge to CGT would only apply on the disposal of an interest in a residential property if it was:


  • used in the trade of a branch or agency located in the UK, see CG25500+ or
  • disposed of during a period of temporary non-residence, see CG26100+


Unless an election is made under TCGA92/Sch 4ZZB para 2  only the period of ownership that is after 5 April 2015 is taken into account because only the gain accruing after 5 April 2015 is within the scope of NRCGT. However where the interest in the property was acquired before 6 April 2015 and the property was the main residence see CG65070.


In cases where a period of absence includes 6 April 2015 and the period of ownership is treated as commencing on 6 April 2015, TCGA92/S223A(2) allows an individual to elect that an earlier period should be taken into account for the purposes of determining entitlement to relief under TCGA92/S223, see CG65030+.


Where an election is made it must state the date on which the individual is relying on to meet condition A. The period between the date on which condition A is met and 5 April 2015 is then taken into account when determining the absence relief that may be due.


Example 1

Mr F has a residence in the UK and he is a UK resident up to 2012-13. He then becomes non-resident from 6 April 2013. He elects that 6 April 2013 should be treated as the date on which condition A is met.


Where the conditions for absence reliefs are met the property is deemed to be occupied as a residence TCGA92/S223(3).



Example 2

Same facts as in example 1 but Mr F returns to the UK and becomes resident again for 2018-19. He returned to live in his former residence for one year, leaves the UK again on 5 April 2019 and eventually disposes of the UK property on 5 April 2021.

In the period 6 April 13 to 5 April 2019 he had no other residence on which private residence relief was due.

            No election is made under para 2 Sch4ZZB.


            The period from 6 April 2015 could be analysed as follows:

6 April 2015 to 5 April 2018 (three years for any reason TCGA/S223(3)(a)) – Private residence relief due

6 April 2018 to 5 April 2019 (actual use as only residence) – Private residence relief due

                        6 April 2019 to 5 October 2019 – No relief due

6 October 2019 to 5 April 2021 (final period exemption) _ Private residence relief due


            Gain for period from 6 April 2015 is £300,000.

            Private residence relief due (5.5/6) is £275,000

            Gain chargeable to NRCGT is £25,000


Further examples are included in CG65070.