Taxation of Chargeable Gains Act 1992 section 225B

Disposals in connection with divorce, etc.

Section 225B provides capital gains tax private residence relief to an individual who has left the former matrimonial or civil partnership home and subsequently disposes of it, provided certain conditions are met and a claim is made.

• When an individual leaves the shared home on separation, divorce or dissolution of a civil partnership, the property can continue to be treated as their main residence for private residence relief purposes until it is disposed of, provided three conditions are satisfied.
• The disposal must be made under a court order or an agreement connected with the divorce, dissolution, annulment, judicial separation or permanent separation of the couple (Condition A), and the property must remain the only or main residence of the other spouse or civil partner throughout the intervening period (Condition B).
• The individual who has left must not have nominated another property as their main residence for any part of the period between moving out and the disposal (Condition C).
• The relief is not automatic — the individual must make a claim for it to apply.