CG64427 - Private residence relief: only or main residence: meaning of residence
The word residence is not defined in the legislation so it must be given its ordinary meaning. For an individual its ordinary meaning is the dwelling in which that person habitually lives: in other words, his or her home.
There are certain circumstances where the legislation deems a dwelling-house to be the residence of an individual even though it is not occupied by that individual as their home. These circumstances are set out at CG64477.
In all other circumstances a dwelling-house must be occupied by the individual as a residence before it can qualify for relief.
Judicial interpretation
The scheme of private residence relief was summarised by Brightman J in Sansom v Peay (52TC1) as,
바카라 사이트淭o exempt from liability to Capital Gains Tax the proceeds of sale of a person바카라 사이트檚 home.바카라 사이트�
Here Brightman J uses the word 바카라 사이트榟ome바카라 사이트� in substitution for the word 바카라 사이트榬esidence바카라 사이트�.
And in Frost v Feltham (55TC10), where the Court was asked to decide which of an individual바카라 사이트檚 residences was his main residence, Nourse J stated,
바카라 사이트淎 residence is a place where somebody lives.바카라 사이트�
These quotations clearly emphasise the point that the test of residence is one of quality rather than quantity: the dwelling-house must have become the owner바카라 사이트檚 home. There is no minimum period of occupation that would enable an individual to establish a residence. This was confirmed by Millet J in Moore v Thompson (61TC15) where he stated,
바카라 사이트淚t is clear that the Commissioners were alive to the fact that even occasional and short residence in a place can make that a residence; but the question was one of fact and degree for the Commissioners.바카라 사이트�
To apply the relief every case must be decided upon its own particular facts. In most cases where the relief applies it will be straightforward to determine if the individual바카라 사이트檚 occupation amounts to residence.
In other cases, it may be necessary to have a more detailed understanding of the specific facts of the case including the wider circumstances of the individual. Similar points to those mentioned in CG64545 concerning the identification of the main residence can be equally relevant when considering whether a single dwelling-house is a residence.