CG64977 - Private residence relief: computation of relief: general rule
At its simplest, the amount of relief available is computed by dividing the period in which the property was used as its owner바카라 사이트™s only or main residence, together with the final period of ownership, see CG64985+, by the total period of ownership.
Example
An individual acquires a dwelling-house in January 2011 for £100,000. It is his only or main residence from January 2014 to January 2018. The dwelling house is sold in January 2021 for £250,000.
The gain before relief is:
| Description | Amount (£) |
|---|---|
| Disposal proceeds | 250,000 |
| Less Cost | 100,000 |
| Equals Gain | 150,000 |
Private Residence Relief
Period of ownership: January 2011 - January 2021 = 120 months
Period of only or main residence: January 2014 - January 2018 = 48 months
Final period allowed by s223(2) TCGA92 (see CG64985) = 9 months
The relief is (48+9) /120 x £150,000 = £71,250
The chargeable gain will be £78,750 (£150,000 - £71,250) before the annual exempt amount.