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HMRC internal manual

Capital Gains Manual

Private residence relief: letting: jointly owned residence

A dwelling house which is jointly owned by a husband and wife is sold in 2014 at a gain to each of them of £75,000. It has been lived in by them as their only or main residence throughout their period of ownership. A proportion of the property, agreed at 60 per cent has been let throughout the period as residential accommodation.

The computation is

    Husband Wife
    £ £
net gain   75,000 75,000
private residence relief   30,000 30,000
    45,000 45,000
relief under TCGA92/S223(4) limited to the lowest of: private residence relief £30,000    
  TCGA92/S223(4)(b) £40,000    
  gain arising by reason of the letting £45,000    
applicable limit   30,000 30,000
Chargeable gain   15,000 15,000