PRIMARY RESIDENCE - Capital Gains Tax

If a person' primary residence is a Care/Nursing Home and their house has been unoccupied (for a full year) since moving into Care/Nursing Home, does Capital Gains Tax require paid if sold. I have been given to understand that this has always been the case?

Hi Safi,

If you’re a disabled person or a resident in a care home the final 36 months of ownership may qualify for relief if you do not have any other relevant right in relation to a private residence. More detail is available in the Capital Gains Tax Manual and HS283 Private Residence Relief (2023)

Thank you.

Thank you, I shall study those details.

Hi, I have now read the information and believe "CGT relief" would have been appropriate. May I ask/ confirm which form/forms the Power of Attorney would have needed to complete in order to claim CGT relief and to which HMRC Dept. they would have been sent to (person in the Care Home and the property both in Scotland) ? The Power of Attorney, became Personal Representative upon the person' death in 2020. I would have thought that this information (CGT relief application copies etc) would be in (or denoted in) the Grant of Confirmation (Probate in England), but it is not? For info. the property (surprisingly) had been beneath the Inheritance Tax threshold, according to the Registers of Scotland Deed "Disposition" when sold in 2017 and so no Tax was paid on the property in any respect? Is this quite common?

Hi,

Once you have calculated the gain and deducted private residence relief, if there is still a gain, You can report this by creating a capital gains account at:

Report and pay your Capital Gains Tax

If you cannot do this online, you can downoad a paper copy of the capital gains return at:

Report Capital Gains Tax on UK property

Thank you.