Commentary

C3.1702 What is a dwelling house for PPR purposes?

Capital gains tax
Capital gains tax | Commentary

C3.1702 What is a dwelling house for PPR purposes?

Capital gains tax | Commentary

C3.1702 What is a dwelling house for PPR purposes?

Principal Private Residence (PPR) relief applies in respect of a disposal by an individual of, or of an interest in1:

  1.  

    •     a dwelling house or part of a dwelling house that is, or has at any time in the period of ownership been, the taxpayer's only or main residence (see C3.1704), or

  2.  

    •     land (including buildings)2 which the taxpayer occupies and enjoys with that residence as its garden or grounds up to the permitted area. The permitted area is an area of up to 0·5 of a hectare or such larger area as, having regard to the size and character of the dwelling house, is required for the reasonable enjoyment of it (or of the part in question) as a residence3

The whole of building may be a dwelling house

The word 'dwelling house' is not defined in TCGA 1992. Whether a taxpayer's residence constitutes a dwelling house is therefore a question of fact and degree.

Depending on the facts of the case, a dwelling house may comprise a single building, part of a building or several buildings.

Even though the whole of a building may comprise a dwelling house, PPR relief will be apportioned according to use. For example the whole of the following buildings are considered to be dwelling houses4:

  1.  

    •     premises where the owner resides and from which the owner carries on a business (such as rooms above a shop)

  2.  

    •     premises partly let as residential accommodation (see C3.1710)

  3.  

    •    

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