Private residence relief: dependent relative: at 5/4/88: sole residence
D acquired a dwelling house in June 1985 and sold it in December 1992 realising a gain of £50,000 before relief. The house was provided rent-free and without any other consideration as the sole residence of D’s widowed mother from 1 June 1985 to 1 October 1989 when she died.
The private residence relief due under TCGA92/S226 is computed as follows
- period of ownership June 1985 - December 1992 = 91 months
- period of sole residence of dependent relative
June 1985 - October 1989 = 53 months
- final period allowed by TCGA92/S223 (2) = 36 months (see CG64985+)
|The relief due is||53+36||x||50,000||=||48,902|
The chargeable gain is £1,098 before annual exempt amount.