Taxation of Chargeable Gains Act 1992 section 222B

Non-qualifying tax years

Section 222B restricts private residence relief where the property is located in a territory in which neither the owner nor their spouse or civil partner is tax resident, and the owner does not meet a minimum overnight stay requirement at the property.

• A tax year is a "non-qualifying tax year" if neither the owner nor their spouse or civil partner is resident in the territory where the property is located, and the owner does not stay overnight at the property for at least 90 days during that year (the "day count test").
• During any non-qualifying tax year or non-qualifying partial tax year, the property is treated as not occupied as a residence by the owner, thereby reducing or eliminating the private residence relief for that period.
• An individual is treated as resident in an overseas territory for a tax year if they are liable to tax there by reason of domicile or residence for more than half the year, or if they would satisfy the UK statutory residence test applied as though it referred to that overseas territory.
• These rules apply from 2015-16 onwards for most disposals, and they do not override the existing reliefs for job-related accommodation or permitted periods of absence.