Private residence relief: dependent relative: rent free: xfer from
It is common for dwelling houses to be transferred between members of a family without any cash consideration being paid. A house may be passed to a younger generation, for example from parents to children, in order to mitigate the effect of Inheritance Tax on the parents. The parents will usually remain in occupation of the dwelling house and, when that dwelling house is eventually sold, the children may claim relief under TCGA92/S226 on the basis that their parents were their dependent relatives.
If the transfer of the dwelling house has been made on the basis of an explicit agreement that the transferor will continue to reside in it, it may be possible to show that relief is not due as the property has not been provided without any other consideration, see CG65630. But each case depends on its own facts and it cannot be assumed that an agreement existed.