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PART V
Special Reliefs
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Private residence.
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25.—(1) This section applies to a gain accruing to an individual on the disposal of, or of an interest in—
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(a) a dwelling-house or part of a dwelling-house which is, or has been occupied by him as his only or main residence, or
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(b) land which he has for his own occupation and enjoyment with that residence as its garden or grounds up to an area (exclusive of the site of the dwelling-house) not exceeding one acre:
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Provided that where part of the land occupied with a residence is and part is not within this subsection, then that part shall be taken to be within this subsection which, if the remainder were separately occupied, would be the most suitable for occupation and enjoyment with the residence.
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(2) The gain shall not be a chargeable gain if the dwelling-house or the part of a dwelling-house has been occupied by the individual as his only or main residence throughout the period of ownership, or throughout the period of ownership except for all or any part of the last twelve months of that period.
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(3) Where subsection (2) does not apply, such portion of the gain shall not be a chargeable gain as represents the same proportion of the gain as—
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(a) the length of the part or parts of the period of ownership during which the dwelling-house or the part of a dwelling-house was occupied by the individual as his only or main residence, but inclusive of the last twelve months of the period of ownership in any event, bears to
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(b) the length of the period of ownership.
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(4) (a) For the purposes of subsections (2) and (3)—
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(i) any period of absence throughout which the individual worked in an employment or office all the duties of which were performed outside the State, and in addition
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(ii) any period of absence not exceeding four years (or periods of absence which together did not exceed four years) throughout which the individual was prevented from residing in the dwelling-house or the part of a dwelling-house in consequence of the situation of his place of work or in consequence of any condition imposed by his employer requiring him to reside elsewhere, being a condition reasonably imposed to secure the effective performance by the employee of his duties,
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shall be treated as if in that period of absence the dwelling-house or the part of a dwelling-house was occupied by the individual as his only or main residence if both before and after the period the dwelling-house (or the part in question) was occupied by the individual as his only or main residence.
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(b) In this subsection “period of absence” means a period during which the dwelling-house or the part of a dwelling-house was not the individual's only or main residence and throughout which he had no residence or main residence eligible for relief under this section.
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(5) If the gain accrues from the disposal of a dwelling-house or part of a dwelling-house part of which is used exclusively for the purposes of a trade or business or of a profession, the gain shall be apportioned and the foregoing subsections shall apply in relation to the part of the gain apportioned to the part which is not exclusively used for those purposes.
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(6) If at any time in the period of ownership there is a change in the dwelling-house or the part of it that is occupied as the individual's residence, whether on account of a reconstruction or conversion of a building or for any other reason, or there have been changes as regards the use of part of the dwelling-house for the purpose of a trade or business, or of a profession, or for any other purpose, the relief given by this section may be adjusted in such manner as the inspector and the individual may agree, or as the Appeal Commissioners may on an appeal, consider to be just and reasonable.
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(7) For the purposes of this section an individual shall not be treated as having more than one main residence at any one time and so far as it is necessary to determine which of two or more residences is an individual's main residence for any period—
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(a) that question may be concluded by agreement between the inspector and the individual on the latter giving notice in writing to the inspector within two years from the beginning of that period, or given by the end of the year 1975-76, if that is later, and
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(b) failing such agreement, the question shall be concluded by the determination of the inspector, which determination may be as respects either the whole or specified parts of the period of ownership in question,
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and notice of any determination of the inspector under paragraph (b) shall be given to the individual who may appeal to the Appeal Commissioners against that determination within twenty-one days of service of the notice.
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(8) In the case of a man and his wife living with him—
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(a) there can only be, for the purposes of this section, one residence or main residence for both, so long as living together, and, where a notice under subsection (7) (a) affects both the husband and his wife, it must be made by both, and
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(b) if the one disposes of, or of his or her interest in, the dwelling-house or part of a dwelling-house which is their only or main residence to the other, or if it passes on death to the other as legatee, the other's period of ownership shall begin with the beginning of the period of ownership of the one making the disposal or from whom it passes on death, and
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(c) if paragraph (b) applies, but the dwelling-house or part of a dwelling-house was not the only or main residence of both throughout the period of ownership of the one making the disposal, account shall be taken of any part of that period during which it was his only or main residence as if it was also that of the other, and
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(d) any notice under subsection (7) (b) which affects a residence owned by the husband and a residence owned by the wife shall be given to each and either may appeal under that subsection.
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(9) This section shall also apply in relation to a gain accruing to a trustee on a disposal of settled property being an asset within subsection (1) where during the period of ownership of the trustee the dwelling-house or the part of a dwelling-house mentioned in that subsection has been the only or main residence of an individual entitled to occupy it under the terms of the settlement and in this section as so applied—
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(a) references to the individual shall be taken as references to the trustee except in relation to the occupation of the dwelling-house or the part of a dwelling-house, and
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(b) the notice which may be given to the inspector under subsection (7) (a) shall be a joint notice by the trustee and the person entitled to occupy the dwelling-house or the part of a dwelling-house.
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(10) This section shall not apply in relation to a gain if the acquisition of, or of the interest in, the dwelling-house or the part of a dwelling-house was made wholly or mainly for the purpose of realising a gain from the disposal of it, and shall not apply in relation to a gain so far as the gain is attributable to any expenditure which was incurred after the beginning of the period of ownership and was incurred wholly or mainly for the purpose of realising a gain from the disposal.
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(11) Apportionments of consideration shall be made wherever required by this section and, in particular, where a person disposes of a dwelling-house only part of which is his only or main residence.
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(12) In this section “the period of ownership”—
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(a) where the individual has had different interests at different times, shall be taken to begin from the first acquisition taken into account in arriving at the expenditure which under Schedule 1 is allowable as a deduction in computing under that Schedule the amount of the gain to which this section applies, and
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(b) for the purposes of subsections (2), (3) and (4), shall not include any period before the 6th day of April, 1974.
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