Taxation of Chargeable Gains Act 1992 section 224

Relief under sections 223 and 223B: further provisions

Section 224 sets out important limitations and adjustments to private residence relief, addressing situations where part of a home is used for business, where there have been changes in use during ownership, and where the property was acquired with a profit-making motive.

• Where part of a dwelling-house is used exclusively for trade, business, profession, or vocation, the gain must be apportioned — private residence relief applies only to the residential portion
• If there are changes during the ownership period to what is occupied as the residence or to how parts of the property are used, the relief may be adjusted on a just and reasonable basis
• Private residence relief is denied entirely if the property was acquired wholly or partly for the purpose of making a gain on disposal, and is also denied to the extent that any gain is attributable to expenditure incurred during ownership for that profit-making purpose
• These rules are subject to a separate exception for adult placement carers under section 225D