Taxation of Chargeable Gains Act 1992 section 222

Relief on disposal of private residence

Section 222 provides relief from capital gains tax on the disposal of an individual's only or main residence, including its garden and grounds, and sets out the rules for nominating a main residence and for job-related accommodation.

• A gain on the disposal of a dwelling-house (or part of one) that has been the individual's only or main residence, together with garden or grounds up to 0.5 hectares (or more if justified by the size and character of the property), may be relieved from CGT.
• Where an individual has two or more residences, they may nominate which is to be treated as the main residence by notifying HMRC within two years; spouses or civil partners living together may have only one main residence between them.
• If an individual lives in job-related accommodation but owns a dwelling-house they intend to occupy as their main residence in due course, the relief applies to that dwelling-house as though it were actually occupied during that period.
• Where only part of a dwelling-house qualifies as the individual's main residence, the sale proceeds and any gain must be apportioned between the qualifying and non-qualifying parts.