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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
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Restriction of private residence relief: trustees: transitional rules: FA2004 Sch22 Para 8

TCGA92/S226A

Where a claim for gifts relief under TCGA92/S260 is made in relation to any earlier disposal, the latest of which was made before 10 December 2003, private residence relief is due subject to the following transitional provisions:

  • Private residence relief will not be available in respect of the later disposal for that part of the transferors’ period of ownership falling after 9 December 2003. No period after that date will be treated as a period of occupation as an only or main residence, so that the gain arising in respect of the later disposal will need to be apportioned and only a fraction of the gain will qualify for the relief.
  • If any part of the final 36 months of ownership by the transferors falls after 9 December 2003, that part of the final 36 months will not count as a period of occupation for private residence relief purposes.