CG64990 - Private residence relief: final period exemption: cannot exceed gain

If the dwelling-house is used for part or all of the final part of the period of ownership as its owner바카라 사이트™s only or main residence, that period may qualify for relief both as a period of residence and as part of the exempt final period. This period should only be counted once in computing relief. This is illustrated below.

Example

An individual acquires a dwelling-house in May 2011 and uses it as her only or main residence from August 2015 to June 2020. The house is sold in November 2020 and a gain of £50,000 before private residence relief arises.

The relief is computed as follows:

  • Period of ownership is May 2011 - November 2020 = 115 months
  • Period of only or main residence is August 2015 - June 2020 = 59 months
  • Final period exemption is July 2020 - November 2020 = 5 months

The relief is 59+5 / 115 x £50,000 = £27,827

The chargeable gain is £22,173 (£50,000 - £27,827) before the annual exempt amount.