CG64739 - Private residence relief: letting: residence partly used for trade
A dwelling-house is sold at a gain of £400,000 in 2014. It has been lived in by the owner throughout her period of ownership as her only or main residence but she has also used the property as a residential training college which she operates as a trade, charging for lodging and tuition. It is agreed that 60 per cent of the property has been used for teaching, 15 per cent has been used as the students lodgings and 25 per cent has been used as the residence of the owner.
The computation is
| Description | - | Amount | £ |
|---|---|---|---|
| Net gain | - | - | 400,000 |
| Private residence relief (25%) | - | - | 100,000 |
| - | - | - | 300,000 |
| Relief under s223B TCGA92 limited to the lowest of | - | - | - |
| - | private residence relief | 100,000 | - |
| - | or | - | - |
| - | TCGA92/S223B(4)(b) | 40,000 | - |
| - | or | - | - |
| - | gain arising by reason of the letting (15%) | 60,000 | - |
| Applicable limit | - | - | 40,000 |
| Chargeable gain | - | - | 260,000 |