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HMRC internal manual

Capital Gains Manual

Private residence relief: dependent relative: rent free: interest in

You may see claims to relief under TCGA92/S226 where the dependent relative has an interest in the dwelling house together with the person who is claiming relief. For example, a mother and son are joint owners of the house in which the mother lives.

This will commonly come about for one of two reasons

  • asset splitting - where the dependent relative originally owned the whole and has transferred a part, see CG65642
  • financial assistance - where the dependent relative could not afford a house and has been assisted by the claimant, see CG65645.