Private residence relief: periods of absence: introduction
TCGA92/S223 (3) treats certain periods of absence from a residence as periods of residence if the conditions set out at CG65046 are fulfilled.
The purpose of the legislation is to avoid the need to keep detailed records of absence from a residence to compute small restrictions to relief and to cater for the individual who is obliged to be absent from their residence for a time.
Section 223 (3) sets out the qualifying periods of absence as follows:
- Any periods of absence for whatever reason which do not exceed 3 years in total, Section 223(3)(a), see CG65040.
- Any periods of absence of any length throughout which the individual is working in an office or employment all the duties of which are performed outside the United Kingdom, or throughout which the individual lived with a spouse or civil partner who worked in such office or employment Section 223(3)(b), see CG65040.
- Any periods of absence up to a maximum of four years during which the individual could not live in the house
* because of the situation of his or her place of work, or * because of any condition reasonably imposed by his or her employer requiring him or her to live elsewhere for the purpose of his or her employment.
Section 223(3)(c), see CG65040.
- Any periods of absence up to a maximum of four years throughout which the individual lived with a spouse or civil partner who is affected by the conditions at c) above, Section 223(3)(d), see CG65040.
An individual may have a qualifying period of absence under more than one head and these may be added together. This is illustrated by the example at CG65065. If the limit for periods of absence under a particular head is exceeded relief may be granted for the maximum period allowed. This is illustrated by the example at CG65066.
The same period may qualify for exemption under more than one head. For example, a period of overseas employment may qualify under all three. If so, relief should be given in such a way as to give the individual the most favourable treatment. This is illustrated by the example at CG65065.
The provisions within sections 223(3)(b) and 223(3)(d) above that allow periods of absence for individuals who are unable to live in their home as a result of their spouse or civil partner’s period of absence apply to disposals made on or after 6 April 2009.
For disposals prior to 6 April 2009 see CG65050 ESC D3 applied to give the same effect.