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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Private residence relief: dependent relative: rent free

TCGA92/S226 (1)For relief to be due the individual making a claim to relief in respect of a gain on the sale of a dwelling house must have provided that dwelling house to his or her dependent relative rent free and without receiving any other consideration.

Usually this condition will not present any problems but there are three areas which may cause difficulties.

  • Where a small payment is made by the dependent relative to cover expenses, see CG65610+
  • Where the dwelling house has been transferred from the dependent relative to the claimant and the dependent relative has remained in residence, see CG65625+
  • Where the dependent relative also has an interest in the dwelling house, see CG65640+.