Taxation of Chargeable Gains Act 1992 section Schedule 1B paragraph 6

Building temporarily unsuitable for use as a dwelling

Section Schedule 1B paragraph 6 deals with how a building that has become temporarily unsuitable for use as a dwelling is treated for capital gains tax purposes, and the specific exception where accidental damage makes it unsuitable for 90 or more consecutive days.

• A building that is temporarily unsuitable for use as a dwelling is generally still treated as a dwelling for tax purposes.
• An exception applies where accidental damage (including events beyond the owner's control) renders the building unsuitable for use as a dwelling for a continuous period of at least 90 days before the date of disposal.
• The accidental damage exception does not apply if the damage occurred during deliberate alteration works that were expected to make the building unsuitable for use as a dwelling for at least 30 consecutive days.
• Where the exception does apply, any restoration work carried out during the 90-day period to make the building suitable for use as a dwelling again is not treated as construction or adaptation for use as a dwelling.

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