CG64300 - Private residence relief: the entity of the dwelling house: dwelling-house is the whole building

Private residence relief is only available in respect of a gain accruing on the disposal of, or of an interest in, a dwelling-house which has been occupied as the only or main residence.

In most cases the whole of a building in which a person has a residence will be a dwelling-house. This will include:

• Premises in which the owner resides although he or she also carries on a business there (for example rooms above a shop)
• Premises which are partly let as residential accommodation
• Small hotels and guest houses where the proprietor lives on the premises.

In such cases, although the whole of the building may be the dwelling-house, it is only partially used as a residence. Therefore, private residence relief will be restricted to only relieve the part of the gain accruing which is attributable to the residential part of the dwelling-house (see CG64650+).