Malcolm Finney looks at two important but often misunderstood sections of the private residence relief rules.
A capital gain arising on a disposal of an individual’s only or main residence is in principle exempt from a charge to capital gains tax (CGT) (TCGA 1992, s 222). Subject to satisfying a number of conditions the exemption may be extended with respect to disposals made by trustees (e.g. under a will trust) or the personal representatives (PRs).
However, it is important to know which person effects the disposal.
Disposals by trustees
It is not unusual for a deceased on death to settle their private residence or a former rental property on trust (either a discretionary trust or an interest in possession trust) for the benefit of their surviving spouse, children or grandchildren. For the exemption from CGT on a future
