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HMRC internal manual

Capital Gains Manual

Private residence relief: furnished holiday lettings: rolled-over gain

TCGA92/S241 (6)

The cost of acquisition of a dwelling house may have been reduced under Section 152 or TCGA92/S153 if the dwelling house

  • has been taken into use as furnished holiday accommodation


  • has qualified as a replacement asset.

If the dwelling house has subsequently been used as its owners only or main residence then any relief on disposal should be restricted by the amount deducted from the acquisition cost. This is illustrated by the example at CG61452.