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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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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
           
  91        

The chargeable gain is £1,098 before annual exempt amount.