Taxation of Chargeable Gains Act 1992 section 225C

Sale of private residence under certain agreements with employer, etc

Section 225C provides capital gains tax relief where an individual sells their main home under a home purchase agreement with their employer as part of a work relocation, and subsequently receives a share of any profit the purchaser makes on reselling the property.

• The relief applies when an employee sells their only or main residence because their employer requires them to relocate, and the sale is made under a home purchase agreement with the employer or an appointed purchaser.
• If the individual receives a share of the purchaser's profit on the subsequent resale of the property within three years, that receipt is treated as a gain linked to the original sale of the home rather than as a separate disposal, meaning private residence relief can apply to it.
• The gain is treated as accruing to the individual at the time the profit share is actually received, not at the time of the original sale.
• The relief extends to co-owners of the property, such as a spouse or partner who holds a joint or common interest, regardless of whether the co-owners' shares are equal.