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HMRC internal manual

Capital Gains Manual

Private residence relief: gains: private residence of adult placement carers

Adult placement carers who provide accommodation to adults under an adult placement scheme (England & Wales), adult placement service (Scotland) or with an adult placement agency (Northern Ireland) are normally regarded as carrying on a business. Under such schemes the carer may be required to set aside part of their home exclusively for the use of the person in their care which could mean private residence relief doesn’t apply to that part of their home by virtue of TCGA92/224(1).


TCGA 92/225D was enacted in order to prevent relief from being restricted in these circumstances and applies to disposals made on or after 9 December 2009.

TCGA92/S225D applies to

  • disregard the occupation of part of the house by the adult occupying it under the adult placement scheme or arrangement for the purpose of determining the extent to which the house was used as the carer’s residence
  • ensure that the occupation of that part of the house by the adult under the adult placement scheme or arrangement doesn’t amount to exclusive business use for the purposes of TCGA92/S224(1).

The effect is that the availability of private residence relief is unaffected by the use of the carer’s home in their business as a carer.