CGT—PPR relief for trusts and estates


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Private Client expert
Practice notes

CGT—PPR relief for trusts and estates


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Private Client expert

Practice notes
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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 under the terms of the settlement.

Whether or not a Beneficiary is entitled to occupy a trust property will depend on whether they have an interest in possession in the trust or are otherwise entitled to occupy following an exercise of the trustees’ discretion as a beneficiary of a discretionary trust.

If

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Personal representatives definition
What does Personal representatives mean?

In relation to a person who has died, this means (in the UK) persons responsible for administering the estate of the deceased.

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