There is no principal private residence relief available to an owner if he doesn’t live in the property, but his relatives do.

However, if someone owned a property on 5 April 1988 that has been continuously occupied rent-free by a dependant relative since that date, the property is exempt from CGT when the owner disposes of it.

Dependant relative is defined as the owner’s own, or the owner’s spouse’s, widowed mother or any other relative unable to look after themselves because of old age or infirmity.

There is another possibly tax effective way of providing a home for a relative: by acquiring a property, putting it into trust, and allowing the relative to live in it rent-free for life. However, this is a simplification of the subject, and professional advice must be sought.

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