Private residence relief: dependent relative: at 5/4/88: transitional
E acquired a dwelling house in April 1978 and sold it in April 1992 realising a gain of £60,000 before private residence relief. The house was let from April 1978 to March 1981 and then occupied rent free and without any consideration as the sole residence of
- E’s widowed mother from April 1981 to March 1989 when she died
- E’s widowed mother-in-law from May 1989 to April 1992 when the house was sold.
The private residence relief due in accordance with TCGA92/S226 is computed as follows
- period of ownership 31 March 1982 - March 1992 = 120 months
- period of sole residence of E’s widowed mother
31 March 1982 - March 1989 = 84 months
- final period allowed by Section 223(2) = 36 months(see CG64985+)
|The relief due is||84+36||x||£60,000||=||£60,000|
The gain arising is wholly relieved.