A gain accruing to an individual on the disposal of an interest in a private residence and grounds of up to one acre, which has been occupied by him/her throughout the period of ownership as his/her only or main residence, is fully relieved from Capital Gains Tax (CGT). Certain periods of absence are treated as periods of occupation for the purposes of the relief. For example, the last twelve months of ownership is counted as a period of occupation, which can facilitate an individual who has purchased another private residence and is in the process of selling the previous residence.
Where an individual occupies a property as his/her principal private residence for part of the period of ownership, any gain made on the disposal of the premises is apportioned and the portion related to periods of occupation or deemed occupation is relieved from CGT. For example, if an individual occupied a private residence for twenty years, moved to a new home and the old home was not sold for two years, the full period of occupation and the last twelve months of ownership are relieved from CGT and only 1/22 of any gain made on the disposal of the premises is taxable.
This is already a generous relief and I have no plans at this time to make changes in line with the Deputy's suggestion.