C3.1710 Lettings relief on the disposal of a main or only residence
Lettings relief is an additional exemption from CGT given in addition to PPR relief. It is not available where a property did not qualify for PPR relief.
Disposals on or after 6 April 2020
For disposals on or after 6 April 2020 lettings relief is available where1:
• the disposal is of an only or main residence, and
• the owner let part of the dwelling house as residential accommodation, and
• the tenant has no interest in the dwelling house, and
• the owner remains living in the part of the dwelling house that is not let, as an only or main residence during the tenancy of the other part of the dwelling
Where occupancy has been shared between the owner and the tenant as described above, then lettings relief is available.
Lettings relief is given after PPR relief where part of the gain remains chargeable.
Lettings relief is the lesser of2:
• the gain attributable to the let, and
• the PPR relief, and
Lettings relief cannot create a capital loss
The relief cannot exceed the chargeable gain made whilst letting out part of the home, ie lettings relief cannot create a capital loss.
Lettings relief is not available where there is exclusive business use
Where a gain accrues on the disposal of a dwelling, or part of a dwelling, that has been used exclusively for the purposes of a trade or business, lettings relief will not be available. The
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