CG64500 | Private residence relief: only or main residence: two or more residences: late nominations

There may be occasions where an individual has more than one residence within s222 TCGA92 and not be aware of it. For example, an individual may work in London during the week and stay in a rented flat in the city, but also own a house elsewhere which they use as their residence at weekends and holidays etc.

If the flat is rented under a tenancy, then it is a residence within s222 TCGA92. However, the individual may not realise this and as such may be unaware that they are able to nominate which residence is to be treated as the main residence before the normal time limit for making a notice expires. It may be the case that based on the facts, see CG64545, the London flat is the main residence. The result of this will be that the only residence likely to give rise to a gain on disposal will not attract relief.

S222(5A) TCGA92 applies in relation to a notice given on or after 6 April 2020 and replaces an earlier extra-statutory concession (ESC D21). It applies where an individual has failed to make a nomination specifying which of two or more residences is their main residence within the statutory time limit of two years. It allows a late nomination for a period of time, provided that all but one of their residencies during that period had a negligible capital value.

In relation to notices prior to 6 April 2020 late notices could be made under ESC D21 which allowed such notices where all but one of their residences had a negligible capital value so that the time limit was extended until a reasonable time after the individual was first made aware that a nomination was needed.

In practice an individual would not normally be aware of the need for a nomination until a residence was sold and a computation of the gain accruing submitted. So the time limit for making a nomination under ESC D21 was normally extended for a reasonable period after the computation had been submitted and the need for a nomination explained.