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HMRC internal manual

Capital Gains Manual

Private residence relief: non-residential use and letting: introduction

TCGA92/S222 (1)(a) sets out that relief is available in respect of a disposal of a dwelling house or part of a dwelling house which has been used as the individual’s only or main residence at some time during their period of ownership. Relief is not available under TCGA92/S222 (1)(a) for any part of the dwelling house which has never been so used.

TCGA92/S224 (1)

There is also a specific exclusion from relief resulting from TCGA92/S224 (1) for any part of the dwelling house which has been used exclusively for a trade or for similar purposes, see CG64660+.

TCGA92/S224 (2)

Furthermore, TCGA92/S224 (2) sets out that if there has been a change in the use of some part of the dwelling house during the period of ownership, the relief is adjusted accordingly see CG64760+.

This section explains what relief is due when some or all of the dwelling house has been

  • used for a trade, business, profession or vocation, see CG64660+
  • used for an office or employment, see CG64690
  • used by a lodger or let, see CG64700+
  • unused, see CG64750.