Taxation of Chargeable Gains Act 1992 section 225E

Disposals by disabled persons or persons in care homes etc.

Section 225E extends the final period of private residence relief from 9 months to 36 months for individuals who are disabled or living in a care home, provided they have no other property eligible for private residence relief.

• Where a disabled person or long-term care home resident disposes of their former private residence, the final period exemption is extended from 9 months to 36 months, meaning the last 36 months of ownership are always treated as a period of occupation for private residence relief purposes.
• To qualify, the individual (or their spouse or civil partner, if it is the spouse or civil partner who is disabled or in a care home) must not own any other property on which private residence relief could be claimed at the time of disposal.
• A "long-term resident" in a care home is someone who is living there and has been, or is reasonably expected to be, resident for at least three months. A "care home" is any establishment providing accommodation together with nursing or personal care. A "disabled person" takes its meaning from Schedule 1A to the Finance Act 2005.
• Where the property is held in a trust and the beneficiary entitled to occupy it meets the qualifying conditions, the trustees can benefit from the extended 36-month final period exemption in the same way as an individual owner.