Taxation of Chargeable Gains Act 1992 section 225

Private residence occupied under terms of settlement

Section 225 extends private residence relief to gains made by trustees of a settlement when they dispose of a dwelling-house that a beneficiary occupies as their home under the terms of the settlement.

• Private residence relief applies to trustees disposing of settled property where a beneficiary entitled to occupy the dwelling-house under the settlement has used it as their only or main residence during the trustees' period of ownership
• For the purposes of claiming relief, the trustees generally stand in place of the individual, but matters relating to actual occupation of the property, residence in a territory, and meeting the day count test are assessed by reference to the beneficiary personally
• Any election to nominate the property as a main residence must be made jointly by the trustees and the occupying beneficiary, and any notice given by the trustees under the non-resident CGT disposal rules is only effective if the beneficiary provides written agreement
• The relief under section 223, which covers the calculation of the exempt proportion including letting relief, only applies if the trustees actively make a claim