CG65400 - Private residence relief: settled property: introduction

TCGA92/S225 extends the scope of private residence relief to gains or losses accruing to trustees on the disposal of settled property. The property must be a dwelling house, and/or its garden or grounds if it has any, which has been occupied as the only or main residence of a person entitled to occupy it under the terms of the settlement during the period of ownership of the trustees.

If these conditions are fulfilled private residence relief is due in the same way as it would be due on a gain accruing to an individual. However, TCGA92/S226A operates to deny or restrict the relief available in relation to disposals on or after 10 December 2003 under certain circumstances. The rules on this are explained in CG65405+. Further relief may also be available to the trustees under TCGA92/S223(4) if the dwelling house has been let, in the same way as it would be available to an individual.

If the disposal is made on or after 10 December 2003 the trustees must claim private residence relief.

Whether the residence was settled property is considered at CG65410+. Whether the residence was occupied by a person entitled to occupy it under the terms of the settlement is considered at CG65440+.

The relief due to trustees is in some circumstances extended by concession to a disposal by personal representatives, see CG65470+.

There is a change in the requirements for a notice under TCGA92/S222 (5)(a) when one or more of the residences is settled property. This is explained at CG65480+.