Section 225A: Private residence held by personal representatives, Taxation of Chargeable Gains Act 1992

Sections 222 to 224 shall also apply in relation to a gain accruing to the personal representatives of a deceased person on a disposal of an asset within section 222 (1) if the following conditions are satisfied.

The first condition is that, immediately before and immediately after the death of the deceased person, the dwelling-house or part of the dwelling-house mentioned in section 222 (1) was the only or main residence of one or more individuals.

The second condition is that—

that individual or one of those individuals has a relevant entitlement, or two or more of those individuals have relevant entitlements, and

the relevant entitlement accounts for, or the relevant entitlements together account for, 75% or more of the net proceeds of disposal;

and for this purpose "relevant entitlement" means an entitlement as legatee of the deceased person to, or to an interest in possession in, the whole or any part of the net proceeds of disposal.

In subsection (3) above "net proceeds of disposal" means—

the proceeds of the disposal of the asset realised by the personal representatives, less

any incidental costs allowable as a deduction in accordance with section 38(1)(c) in computing the gain accruing to the personal representatives on that disposal,

but on the assumption that none of the proceeds is required to meet the liabilities of the deceased person's estate (including any liability to inheritance tax).

In sections 222 to 224 as applied by this section—

references to the individual shall be taken as references to the personal representatives except in relation to the matters dealt with in paragraph (aa),

in relation to the occupation of the dwelling-house or part of the dwelling-house, residence in a territory, or meeting the day count test, references to the individual are to be taken as references to a qualifying individual,

the notice which may be given to an officer of the Board under section 222(5)(a) shall be a joint notice by the personal representatives and the individual or individuals entitled to occupy the dwelling-house or part of the dwelling-house and

the notice which may be given by the personal representatives under section 222A is effective only if it is accompanied by written notification from the individual or individuals entitled to occupy the dwelling-house or part of the dwelling-house agreeing to the terms of the notice.

But section 223 (as so applied) shall apply only on the making of a claim by the personal representatives.

In subsection (5)(aa) "a qualifying individual" means an individual—

who has a relevant entitlement, and

by virtue of whom the first condition is met.

Section 225A: Private residence held by personal representatives

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