CGT- Dependant relative occupied pre 5 April 1988

My Parents rented a council house from 1963 to 1993, they then purchased it. In 1996 the title was transferred to myself and my brother (who both also lived in the property from 1963 to 1983) . My parents continued to live in the property rent free until they died Jan 2021 and May2023. Dependant relative relief says " where a dwelling was occupied by a dependant relative at 5 April 1988 and the relative continues to live there, the property will attract main residence relief on a sale when that residence comes to an end, by virtue of section 226" Does that mean even though the property was purchased after 1988, because the dependant occupied the property dependant relative relief can be claimed ?

I'm not a HMRC Admin but unfortunately not. The relief doesn't apply to any property acquired after that date and only applies to properties acquired prior to that date if the relevant conditions are met.

Hi,

The guidance at CG6550 advises that dependent relative relief is not available for "any residence acquired after 5 April 1988". For capital gains purposes, the term 'acquired' means when the property was purchased. The property was acquired in 1993.

The guidance also states that "any residence acquired before that date, the dependent relatives must occupy the dwelling house rent free and without any other consideration". Based on the information provided, dependent relative relief would not be due.  

CG65550 - Private residence relief: dependent relative: introduction

Thank you.