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HMRC internal manual

Capital Gains Manual

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Private residence relief: periods of absence: example: individual prevented from returning to residence

TCGA92/S223(3A) & (B) & ESC/D4

An individual bought a dwelling house in Eastbourne in June 2004. He occupied it as his only residence until July 2005. In that month his employer required him to work in Edinburgh and he rented a house whilst he was there. He was employed in Edinburgh until October 2008 when his employer transferred him to Inverness on a long term contract. He occupied a rented house until January 2014 when he sold his house in Eastbourne to buy a house in Inverness.

You should allow relief as follows.

  • June 2004 - July 2005 - only or main residence
  • July 2005 - July 2009 - 4 years due to requirements of employment, TCGA92/S223 (3)(c)
  • August 2009 - December 2010 - no relief due
  • January 2011 - January 2014 - final period exemption, TCGA92/S223 (1)

He did not resume residence in Eastbourne because the terms of his employment required him to work in Inverness. So he is entitled to relief under Section 223(3)(c) because of TCGA92/S223(3A)&(3B). However this provision does not apply to periods of absence under Section 223(3)(a) and so the period between August 2009 and December 2010 does not qualify as a period of absence and so does not qualify for relief.

If the house in Eastbourne had been disposed of on or after 6 April 2014 the final period exemption would be limited to 18 months see CG64985.