CG64700 - Private residence relief: letting: introduction

Relief is limited by s222(1)(a) TCGA92 to that part of a dwelling-house which has been used as its owner’s only or main residence. So relief is not normally available for a part of the dwelling-house which is let. But there are two exceptions to this rule:

• where a lodger lives with the owner, see CG64702;
• where rooms are occupied by the children or parents of the owner even where they have the exclusive use of a bedroom and / or board is paid

Relief should not be restricted in these two circumstances.

Relief may also be available where accommodation is provided to resident employees such as a nanny or housekeeper.

If relief is restricted because part of the dwelling-house has been let as residential accommodation a further relief which is known as “lettings relief” may be available under s223B TCGA92, see CG64710+.

Where the disposal was before 6 April 2020, if relief is restricted because part or the whole of the dwelling-house has been let as residential accommodation an earlier form of lettings relief may be available under s223(4) TCGA92.