Income Tax Act 2007 section 517M

Private residences

Section 517M provides an exemption from income tax on gains from UK land disposals where those gains relate to an individual's private residence.

• Gains on the disposal of an individual's private residence that qualify for capital gains tax private residence relief are also exempt from income tax under the transactions in UK land rules.
• The exemption applies where the gain would fall within the capital gains tax private residence relief provisions (sections 222 to 226 of TCGA 1992).
• The exemption also applies where the gain would have qualified for private residence relief but was denied solely because the residence was acquired partly with a view to making a gain (section 224(3) of TCGA 1992).
• This prevents an individual's genuine private residence gains from being taxed as income under the transactions in UK land provisions.