CGT—PPR relief for trusts and estates
CGT—PPR relief for trusts and estates

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • CGT—PPR relief for trusts and estates
  • Private residence occupied under the terms of a settlement
  • Interest in possession trusts
  • Discretionary trusts
  • More than one residence
  • Lettings relief
  • Interaction of PPR relief and s 260 hold-over relief
  • Private residence held by PRs
  • Disposals by non-resident trustees

FORTHCOMING CHANGE: On 14 July 2020, the Office of Tax Simplification (OTS) published its online survey and a call for evidence to seek views about capital gains tax. The call for evidence comes in two sections: the first seeks high-level comments on the principles of CGT by 10 August 2020, while the second and primary section of the document invites more detailed comments on the technical detail and practical operation of CGT by 9 November 2020. Although the results of the survey and consultation are not yet known, it is worth bearing the proposals in mind when considering and advising on CGT.

This Practice Note outlines the circumstances in which trustees of a settlement or the personal representatives (PRs) of a deceased person may claim principal private residence (PPR) relief from capital gains tax (CGT) in respect of property held in a settlement or in an estate. For details of PPR relief generally and how it applies to individuals, see Practice Note: CGT—PPR relief.

Private residence occupied under the terms of a settlement

Section 225 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992) extends the PPR exemption in TCGA 1992, s 222 to disposals of settled property where, during the period of ownership by the trustees, the dwelling house has been the only or main residence of a person entitled to occupy the property

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