CG65065 | Private residence relief: example: several periods of absence for different reasons

An individual bought a dwelling-house in Bournemouth in January 2010 and lived in it as his only residence. In October 2010 his employer required him to work in Glasgow. He lived there in a flat provided by the employer until October 2015. Then his employer transferred him to work in Cologne and also provided a flat there. He ended his employment in March 2017 and toured Europe until November 2017. Then he returned to his dwelling-house in Bournemouth and occupied it as his only residence until he sold it in January 2021.

The whole of the period of ownership qualifies for relief for the following reasons

• January 2010 - October 2010 - Only or main residence

• October 2010 - October 2014 - four years absence by reason of employment, s223(3)(c) TCGA92

• October 2014 - October 2015 - one year of absence for any reason, s223(3)(a) TCGA92

• October 2015 - March 2017 - period of absence due to employment outside the United Kingdom, s223(3)(b) TCGA92

• March 2017 - November 2017 - seven months absence for whatever reason, s223(3)(a) TCGA92

• November 2017 - January 2021 - only or main residence.

The period of absence legislation is applied in the way which is most beneficial to the taxpayer. For example, if the period from October 2010 - October 2015 had been treated as qualifying primarily under s223(3)(a) TCGA92 that would have used up the three year allowance and so no relief would have been available for the period between March 2017 and November 2017.

The periods of absence are cumulative. In this example, the total qualifying period is seven years two months.