CG64739 - Private residence relief: letting: residence partly used for trade
A dwelling house is sold at a gain of £200,000 in 1992. It
has been lived in by the owner throughout her period of ownership
as her only or main residence but she has also used the property as
a residential training college which she operates as a trade,
charging for lodging and tuition. It is agreed that 60 per cent of
the property has been used for teaching, 15 per cent has been used
as the students lodgings and 25 per cent has been used as the
residence of the owner.
The computation is
| £ | |||
| net gain | 200,000 | ||
| private residence relief 25% | 50,000 | ||
| 150,000 | |||
| relief under Section 223(4) limited to the lowest of | |||
|
private residence relief |
50,000 | ||
| or | |||
|
Section 223(4)(b) |
40,000 | ||
|
or |
| ||
|
gain arising by reason of the letting (15%) |
30,000 | ||
| applicable limit |
| 30,000 | |
| Chargeable gain |
| 120,000 | |
