CG65009 | Private residence relief: ESC D49: good reasons for exceptional delay in taking up residence (for disposals prior to 6 April 2020 only)

If the 12 month period is exceeded an extension may be authorised by the Business Unit Head or the Grade 6 Compliance Team Leader if there were good reasons for exceptional delay. No extension should be allowed beyond 24 months from acquisition.

What constitutes a good reason for exceptional delay is a matter for the discretion of the Business Unit Head or the Grade 6 Compliance Team Leader. Normally, it would be expected that the delay would be caused by circumstances outside the individual’s control.

If the period of 12 months or the longer period allowed is exceeded, no extension to the period of residence can be authorised under ESC D49.

Example

An individual bought a dwelling-house in a dilapidated condition in January 2016. Refurbishment was begun immediately but, due to lack of funds, was not completed until May 2019, when the dwelling-house was occupied as the individual’s only or main residence. You should not allow any extension of the period of residence because the circumstances do not fall within ESC D49. Relief is only available from May 2019 onwards.