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HMRC internal manual

Capital Gains Manual

Private residence relief: letting: relief for letting of residential accommodation

TCGA92/S223 (4)

Where relief is restricted because some or all of the dwelling house has been let as residential accommodation, a further relief may be available under TCGA92/S223 (4).

It is therefore important to identify the entity which makes up the dwelling house for the purpose of TCGA92/S222 (1) (a) in order to decide if further relief is due under TCGA92/S223 (4), see CG64230+.

It is also important to properly identify the entity making up the dwelling house where the property is used for a trade which involves letting as this may not be a straightforward question. This is covered in more detail at CG64723+.

Relief is due under TCGA92/S223 (4) where

  • a gain to which TCGA92/S222 applies accrues to an individual, and
  • part or all of the dwelling house has at some time in the individual’s period of ownership been let as residential accommodation, and
  • a chargeable gain arises by reason of the letting, see CG64721.

The amount of the relief is the lowest of,

  • the amount of private residence relief given by TCGA92/S223 (1) to (3),


  • £40,000,


  • the amount of the chargeable gain arising by reason of the letting.