Flow chart - capital gains tax private residence relief

Private residence relief prevents or reduces capital gains tax being payable from the sale or transfer of a property that’s been your home for all or part of the time you owned it. The once simple rules for this relief have become increasingly complex so care is needed before assuming the relief applies.

Flow chart

The Flow Chart - Capital Gains Tax Private Residence Relief will help you decide if you are entitled to at least some relief.

Definitions for the flow chart:

• Personal representatives - executors or administrators of a person’s estate
• Legatee - someone entitled to a share of a person’s residual estate, i.e. after all debts and specific requests have been paid and met
• Under the terms of a trust - by permission of the trustees when authorised by the terms of the trust deed. It does not mean under the terms of a lease given by the trustees using their general power of managing the trust’s assets and investments.

HMRC provides a comprehensive helpsheet at https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet

Documents

Where you establish that you are entitled to private residence relief our documents may help you with quantifying and making your claim. These are the Claim for Private Residence Relief to Apply to a Former Home, Nominating a Main Residence Election and Non-resident CGT Charge Election.