188ÌåÓý

The content in this manual covers a much higher level of detail compared to say a Helpsheet supporting the Self Assessment Tax Return.ÌýIf you are looking for an introduction to the main rules for the relief for a particular year, please see theÌýPrivate Residence Relief (Self Assessment helpsheet HS283)Ìýon 188ÌåÓý and select the year you are considering.

Private residence relief is given byÌýs222ÌýTCGA92ÌýtoÌýs226ÌýTCGA92.ÌýThe purposeÌýof the relief is to enable a person to replace their existing home with another home of similar value by ensuring that the proceeds of sale of the old home are not diminished by a charge to Capital Gains Tax. So in most cases the gain arising on the disposal of a person's home is relieved from Capital Gains Tax.Ìý

Private residence relief is available where a gain arises from the disposal of an interest inÌý

• dwelling-house, orÌý
• part of aÌýdwelling-houseÌý

which has at some time been its owner’s only or main residence, byÌýs222Ìý(1)(a),ÌýTCGA92 (seeâ€�CG64230+), orÌý

• the garden or grounds of that residence up to the permitted area, byÌýs222Ìý(1)(b),ÌýTCGA92 (seeâ€�CG64350+).Ìý

A residence which is outside the United Kingdom may qualify for relief if the conditions in this guidance are met.Ìý

The garden or grounds includes the buildings standing on that land, seeÌýs288ÌýTCGA92. So a building which is not part of theÌýdwelling-houseÌýcan still qualify for relief if it is within the permitted area of garden or grounds.Ìý