CG64986 | Private residence relief: final period exemption: disposals by disabled persons etc. from 6 April 2014

S225E TCGA92

If a dwelling-house has been used as its owner’s only or main residence at some time in their period of ownership, then the final the period of ownership that will always qualify for relief is 36 months provided the conditions of s225E TCGA92 are met.

Relief will be due when at the date of the disposal either of the two following circumstances apply:

Where -

• the individual is a disabled person or a long-term resident in a care home, and

• the individual does not have any other relevant right in relation to a private residence.

Or where -

• the individual’s spouse or civil partner is a disabled person or a long-term resident in a care home, and

• neither the individual nor the individual’s spouse or civil partner has any other relevant right in relation to a private residence.

Additionally, where an individual has occupied a property under the terms of a settlement and s222 TCGA92 applies by virtue of s225 TCGA92 (see CG65400+), the position of the individual entitled to occupy the property under the terms of the settlement is considered (s225E(7) TCGA92).

Any other relevant right in relation to a private residence

An individual has any other relevant right in relation to a private residence at the time of the disposal if at that time:

• the individual owns or holds an interest in a dwelling-house (or part) other than that in relation to which the gain accrued, or

• the trustees of a settlement own or hold an interest in a dwelling-house (or part) other than that in relation to which the gain accrued, and the individual is entitled to occupy that dwelling-house (or part) under the terms of the settlement, and

• s222 TCGA92 could apply to that interest

Care home

Care home means an establishment that provides accommodation together with nursing or personal care.

Disabled person

Disabled person has the meaning given by Schedule 1A to FA 2005, which states:

“Disabled person” means—

a. a person who by reason of mental disorder within the meaning of the Mental Health Act 1983 is incapable of administering his or her property or managing his or her affairs,

b. a person in receipt of attendance allowance,

c. a person in receipt of a disability living allowance by virtue of entitlement to the care component at the highest or middle rate, or the mobility component at the higher rate

d. a person in receipt of personal independence payment

e. a person in receipt of an increased disablement pension

f. a person in receipt of constant attendance allowance, or

g. a person in receipt of armed forces independence payment.

Long-term resident

Where the individual has been resident or could reasonably be expected to be resident in the care home for at least three months they are a long-term resident.