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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Private residence relief: dependent relative: husband and wife and civil partners

When checking a claim by a married person or by a civil partner in respect of a residence occupied by a dependent relative you should ensure that

  • relief for the same period or any part of it has not been allowed to the other spouse or civil partner
  • if the other spouse or civil partner has provided a residence to a dependent relative and so could make a claim for the same period, that they are aware that no further claim can be made and that any claim which has been made must be given up.The limit to one house between them for a husband and wife or for civil partners of each other is at TCGA92/S226(4). For years before Self Assessment, see CG10301, power to obtain the confirmation set out above was given by Section 226(5).

In January 1983 a husband buys a house which is occupied from that date as the sole residence of his widowed mother. In January 1984 his wife buys a house which is occupied as the sole residence of her aged father. In January 1988, following the death of her father, the wife’s house is sold. Relief is claimed and will exempt the whole of the gain.

In January 1990 the husband’s mother dies and his house is sold in January 1992. His period of ownership is 9 years. His mother occupied the house as a dependent relative for 7 years of which 4 years cannot be claimed because relief has been given to his wife. So relief is available for the remaining 3 years of the husband’s mother’s occupation, 1983, 1988 and 1989, together with the final 2 years of ownership (in accordance with TCGA 1992 section 223(1), and 5/9 of the gain on disposal is relieved.