Taxation of Chargeable Gains Act 1992 section 225A

Private residence held by personal representatives

Section 225A extends the private residence relief (normally available to individuals) to personal representatives of a deceased person who dispose of a property that was used as a home, provided certain conditions about occupancy and entitlement to the sale proceeds are met.

• Private residence relief applies to personal representatives selling a deceased person's home, provided someone was living in it as their only or main residence both immediately before and immediately after the death
• The occupying individual (or individuals collectively) must be entitled, as legatees, to at least 75% of the net proceeds of disposal — calculated as the sale proceeds less incidental disposal costs, ignoring any estate liabilities including inheritance tax
• The personal representatives must actively make a claim for the relief; it does not apply automatically
• Any main residence election notice must be made jointly by the personal representatives and the occupying individual(s), and any notice under the non-resident disposal rules is only effective if the occupying individual(s) provide written agreement