CG65671 - Private residence relief: dependent relative: at 5/4/88: qualifying
Where the gain on a disposal qualifies for this transitional relief the following periods will qualify
- any period before 6 April 1988 in which the dwelling house was the sole residence of a dependent relative
- any period after 5 April 1988 in which the dwelling house was the sole residence of the dependent relative who occupied it on that date
- the final period of ownership allowed by TCGA92/S223 (2), see CG64985+.
A period of occupation as the sole residence of a dependent relative which begins on or after 6 April 1988 does not qualify. This is illustrated by the example at CG65681.
This limitation to dependent relative relief was introduced in the 1988 Finance Act and, in effect, closes the class of qualifying properties at 5 April 1988. To have simply abolished the relief at that time would have been unfair to any person who had incurred the expense of provided a dwelling house to a dependent relative in the expectation that relief would be due. Relief will continue to be due to anyone who had provided a dwelling house to a dependent relative before 6 April 1988 in respect of that dwelling house as long as it is occupied by that dependent relative. So to that extent, dependent relative relief can still arise after 6 April 1988.
But no new houses can qualify for the relief in respect of the occupation by a dependent relative after 6 April 1988. Houses which already qualify because of occupation by a dependent relative before 6 April 1988 cannot qualify for a period after that date as a result of occupation by a different dependent relative.