Malcolm Finney examines when capital gains tax private residence relief applies post-death.
A gain arising on the disposal of a dwelling house, which has at some time in an individual’s ownership been their main residence, shall not be a chargeable gain if, throughout the period of ownership, the dwelling house has been their only or main residence (ignoring the last nine months of ownership) (TCGA 1992, ss 222 and 223). This relief is probably one of the most significant reliefs available to an individual within the capital gains tax legislation.
However, private residence relief is not only available to disposals by individuals. TCGA 1992, s 225 extends the relief to gains accruing to trustees of settlements on disposals of settled property which comprise a dwelling house where it has been occupied by someone under the terms of the settlement as their only or main residence.
But what is the position on
