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Conditions for relief

The gain on the sale of a residential property (together with its grounds) held in trust will be wholly or partly exempt if, during the period of ownership by the trustees:

1. •

   the property has been occupied by a beneficiary of the trust as his or her only or main residence, and

2. •

   the beneficiary in question is entitled to occupy the property under the terms of the trust (discussed at the end of this note)

TCGA 1992, s 225

A similar relief is available on the disposal of a property by the personal representatives of a deceased person. See the Capital gains tax during administration guidance note.

The relief is only available to trustees if a claim is made. It does not apply automatically as with individuals. A claim must be made within four years of the tax year in which the disposal occurred.

The so-called principal private residence (PPR) relief is an exemption rather than a relief. Accordingly, any loss to which