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HMRC internal manual

Capital Gains Manual

Private residence relief: letting: restricted relief on part let

A dwelling house is sold at a gain of £150,000 in 2014. It has been lived in by the owner throughout her period of ownership as her only or main residence. Throughout that period 60 per cent of the property has been let as residential accommodation.

The computation is

net gain     150,000
private residence relief 40%     60,000
relief under TCGA92/S223(4) limited to the lowest of      
  private residence relief 60,000  
  TCGA92/S223(4)(b) 40,000  
  gain arising by reason of the letting 90,000  
applicable limit     40,000
Chargeable gain     50,000