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CGT and Your Principal Private Residence

The sale of an individual's home is normally exempt from CGT, with neither a taxable gain nor loss arising. This is certainly the case where it has been the individual's only or main residence throughout the period it has been owned, or if owned prior to 31 March 1982, then the period since then.

However there are times when a taxable gain or loss can arise. For example the profit arising on disposal may be taxable or partly taxable in any of the following situations...

Periods of absence. When the property is not occupied as the taxpayer's main home any gain that arises in those periods of absences is potentially taxable. However for some periods of absence are not chargeable, with only the excess of following periods being chargeable...

Dependent Relative Relief for pre 5th April 1988 properties. Where the property is owned on 5th April 1988 that has been continuously occupied rent free by a dependent relative since then, the property becomes exempt from CGT. This exemption ceases if there is a change of dependent relative occupier.

How We Can Help You

CGT treatment of the sale of the family home can be complex and planning in advance can greatly assist the outcome. Please contact us for further advice.