Meg Saksida highlights some pitfalls to watch for when considering main residence relief for capital gains tax purposes.
It is usually the case that when an individual is residing in their main residence, they are entitled to main residence relief (MRR) from a capital gains tax (CGT) charge on any increase in value of the home.
However, there are times when the individual is treated as living in their home for MRR purposes, even when they are not physically there. These periods of ‘deemed’ occupation are extremely valuable and can potentially give the taxpayer years of MRR without physically living in their home.
Before the dwelling is moved into
(a) Delay in taking up residence
The period before the taxpayer moves into the home can be an example of a deemed period of occupation, if the individual is
