CG64206 | Private residence relief: tax returns

There are different return requirements for disposals by individuals and by trustees or personal representatives.

Individuals

• no return is required if the disposal is fully relieved from Capital Gains Tax and the acquisition cost of the home is unaffected by gift hold-over relief under the provisions of TCGA92/S260 (see CG67030+).

• if partial relief is available, the taxpayer should provide the address of the property sold with a computation of the gain or loss

• relief may not be due if gift hold-over relief has been claimed on a disposal made on or after 10 December 2003 (see CG65440). Relief may be restricted if gift hold-over relief has been claimed on a disposal made before 10 December 2003 (see CG64933).

Trustees or personal representatives

• If private residence relief is due on a disposal by either a trustee or personal representative, under the provisions of TCGA92/S225 or TCGA92/S225A, it must be notified (see CG65440 (trustees) and CG65460 (personal representatives) either by rendering a return or as a standalone claim. The guidance for claims can be found in SACM3015 - Making and Amending Claims: How Should Claims be Made - HMRC internal manual - GOV.UK (www.gov.uk)

In most cases an assertion that any gain is wholly relieved need not be challenged and a computation of the gain will not be needed. You should look out for disposals which may not be wholly relieved but should consider whether enquiries are worthwhile in trivial cases.