223 Amount of relief.U.K.
(1)No part of a gain to which section 222 applies shall be a chargeable gain if the dwelling-house or part of a dwelling-house has been the individual’s only or main residence throughout the period of ownership, or throughout the period of ownership except for all or any part of the last [F118 months] of that period.
(2)Where subsection (1) above does not apply, a fraction of the gain shall not be a chargeable gain, and that fraction shall be—
(a)the length of the part or parts of the period of ownership during which the dwelling-house or the part of the dwelling-house was the individual’s only or main residence, but inclusive of the last [F218 months] of the period of ownership in any event, divided by
(b)the length of the period of ownership.
(3)For the purposes of [F3sections 222(5) and 222A and] subsections (1) and (2) above—
(a)a period of absence not exceeding 3 years (or periods of absence which together did not exceed 3 years), and in addition
(b)any period of absence throughout which the individual worked in an employment or office all the duties of which were performed outside the United Kingdom [F4or lived with a spouse or civil partner who worked in such an employment or office], and in addition
(c)any period of absence not exceeding 4 years (or periods of absence which together did not exceed 4 years) throughout which the individual was prevented from residing in the dwelling-house or part of the dwelling-house in consequence of the situation of his place of work or in consequence of any condition imposed by his employer requiring him to reside elsewhere, being a condition reasonably imposed to secure the effective performance by the employee of his duties, [F5and in addition,]
[F6(d)any period of absence not exceeding 4 years (or periods of absence which together did not exceed 4 years) throughout which the individual lived with a spouse or civil partner in respect of whom paragraph (c) applied in respect of that period (or periods),]
shall be treated as if in that period of absence the dwelling-house or the part of the dwelling-house [F7were occupied by the individual as a residence] [F8if conditions A and B are met.]
[F9(3A)Condition A is that before the period there was a time when the dwelling-house was the individual’s only or main residence.
(3B)Condition B is that after the period—
(a)in a case falling within paragraph (a), (b), (c) or (d) of subsection (3), there was a time when the dwelling-house was the individual’s only or main residence,
(b)in a case falling within paragraph (b), (c) or (d) of that subsection, the individual was prevented from resuming residence in the dwelling-house in consequence of the situation of the individual’s place of work or a condition imposed by the terms of the individual’s employment requiring the individual to reside elsewhere, being a condition reasonably imposed to secure the effective performance by the employee of his duties, or
(c)in a case falling within paragraph (b), (c) or (d) of that subsection, the individual lived with a spouse or civil partner to whom paragraph (b) of this subsection applied.]
(4)Where a gain to which section 222 applies accrues to any individual and the dwelling-house in question or any part of it is or has at any time in his period of ownership been wholly or partly let by him as residential accommodation, the part of the gain, if any, which (apart from this subsection) would be a chargeable gain by reason of the letting, shall be such a gain only to the extent, if any, to which it exceeds whichever is the lesser of—
(a)the part of the gain which is not a chargeable gain by virtue of the provisions of subsection (1) to (3) above F10... ; and
(b)£40,000.
F11(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F12(7)In this section “period of ownership”—
(a)does not include any period before 31 March 1982, and
(b)where the whole or part of the gain to which section 222 applies is an NRCGT gain chargeable to capital gains tax by virtue of section 14D, does not include any period before 6 April 2015 (but see subsection (7A)).
(7A)Paragraph (b) of the definition of “period of ownership” does not apply in a case where paragraph 9 of Schedule 4ZZB applies by virtue of sub-paragraph (1)(b) of that paragraph (the individual has made an election for the retrospective basis of computation to apply).
(7B)In this section “period of absence” means a period during which the dwelling-house or the part of the dwelling-house was not occupied by the individual as a residence.]
[F13(8)This section is subject to—
(a)section 224 (amount of relief: further provisions),
[F14(aa)section 225D (private residence of adult placement carer),] F15...
[F16(ab)section 225E (disposals by disabled persons or persons in care homes etc), and]
(b)section 226A (private residence relief: cases where relief obtained under section 260).]
Textual Amendments
F1Words in s. 223(1) substituted (with effect in accordance with s. 58(4) of the amending Act) by Finance Act 2014 (c. 26), s. 58(2)(a)
F2Words in s. 223(2)(a) substituted (with effect in accordance with s. 58(4) of the amending Act) by Finance Act 2014 (c. 26), s. 58(2)(a)
F3Words in s. 223(3) inserted (with effect in accordance with Sch. 9 para. 10 of the amending Act) by Finance Act 2015 (c. 11), Sch. 9 para. 4(2)(a)
F4Words in s. 223(3)(b) inserted (with effect in accordance with art. 7(5) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2009 (S.I. 2009/730), arts. 1(1), 7(2)
F5Words in s. 223(3)(c) inserted (with effect in accordance with art. 7(5) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2009 (S.I. 2009/730), arts. 1(1), 7(3)
F6S. 223(3)(d) inserted (with effect in accordance with art. 7(5) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2009 (S.I. 2009/730), arts. 1(1), 7(4)
F7Words in s. 223(3) substituted (with effect in accordance with Sch. 9 para. 10 of the amending Act) by Finance Act 2015 (c. 11), Sch. 9 para. 4(2)(b)
F8Words in s. 223(3) substituted (with effect in accordance with art. 8(4) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2009 (S.I. 2009/730), arts. 1(1), 8(2)
F9S. 223(3A)(3B) inserted (with effect in accordance with art. 8(4) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2009 (S.I. 2009/730), arts. 1(1), 8(3)
F10Words in s. 223(4)(a) repealed (with effect in accordance with Sch. 22 para. 7(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 22 para. 2(2), Sch. 42 Pt. 2(15)
F11S. 223(5)(6) omitted (with effect in accordance with s. 58(4) of the amending Act) by virtue of Finance Act 2014 (c. 26), s. 58(2)(b)
F12S. 223(7)-(7B) substituted for s. 223(7) (with effect in accordance with Sch. 9 para. 10 of the amending Act) by Finance Act 2015 (c. 11), Sch. 9 para. 4(3)
F13S. 223(8) inserted (with effect in accordance with Sch. 22 paras. 7(3)(4), 8 of the amending Act) by Finance Act 2004 (c. 12), Sch. 22 para. 2(3)
F14S. 223(8)(aa) inserted (with effect in accordance with s. 16(4) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 16(1)
F15Word in s. 223(8) omitted (with effect in accordance with s. 58(4) of the amending Act) by virtue of Finance Act 2014 (c. 26), s. 58(2)(c)
F16S. 223(8)(ab) inserted (with effect in accordance with s. 58(4) of the amending Act) by Finance Act 2014 (c. 26), s. 58(2)(c)