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Principal private residence relief ― property held in trust

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Principal private residence relief ― property held in trust

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
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Conditions for relief

The gain on the sale of a residential property (together with its grounds) held in trust will be wholly or partly exempt if, during the period of ownership by the trustees:

  1. the property has been occupied by a beneficiary of the trust as his or her only or main residence, and

  2. the beneficiary in question is entitled to occupy the property under the terms of the trust (discussed at the end of this note)

TCGA 1992, s 225

A similar relief is available on the disposal of a property by the personal representatives of a deceased person. See the Capital gains tax during administration guidance note.

The relief is only available to trustees if a claim is made. It does not apply automatically as with individuals. A claim must be made within four years of the tax year in which the disposal occurred.

The so-called principal private residence (PPR) relief is an exemption rather than a relief. Accordingly, any loss to which

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