Taxation of Chargeable Gains Act 1992 section Sch 1B para 5

Dwelling: basic meaning

Section Sch 1B para 5 defines what constitutes a "dwelling" for the purposes of the capital gains tax rules in Schedule 1B, including what counts as part of a dwelling and which institutional buildings are excluded from the definition.

• A building counts as a dwelling if it is used, suitable for use, or being constructed or adapted for use as a dwelling, provided it is not an institutional building.
• Land intended to be enjoyed with a dwelling as a garden or grounds, including any buildings or structures on that land, forms part of the dwelling.
• Institutional buildings — such as care homes, hospitals, prisons, hotels, armed forces accommodation, and certain student accommodation — are excluded from the definition of a dwelling.
• Purpose-built or converted student accommodation with at least 15 bedrooms, occupied by students for at least 165 days in a tax year, qualifies as an institutional building and is therefore not treated as a dwelling.