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HMRC internal manual

Capital Gains Manual

Land: exchange of joint interests: excluded land

TCGA 1992/S248C

Relief is not available to the extent that the acquired interest in land is “excluded land”.

Land is excluded land to the extent that it is a dwelling-house or part of a dwelling-house used as the landowner’s only or main residence such that on a disposal at any time during the 6 years after the date of the acquisition of the acquired interest the whole or part of the gain is relieved under the private residence relief provisions.

Where the land was not excluded land at the date of the acquisition but becomes excluded land within 6 years of the acquisition, any chargeable gain accruing on the disposal of the relinquished interest must be re-determined without regard to any relief previously given.

TCGA92/S248C (4) provides that any adjustments required where the land becomes excluded land, whether by way of assessment or otherwise, may be made at any time, despite anything in section 34 of TMA70.

Where the relinquished interests and the acquired interests are dwelling-houses which become the only or main residence of the landowner and co-owners then relief may be available under TCGA92/S248E, see CG65150+