Section 225C — Taxation of Chargeable Gains Act 1992: Sale of private residence under certain agreements with employer, etc

Sale of private residence under certain agreements with employer, etc 225C 1 This section applies where—

a an individual disposes of, or of an interest in, a dwelling-house or a part of a dwelling-house which is the individual’s only or main residence (“the initial disposal”),

b the individual does so as a consequence of a change to the situation of the individual’s place of work or that of a co-owner of the dwelling-house or the interest, being a change that is required by the employer of the individual or the co-owner, and c the initial disposal is under a home purchase agreement.

2 If—

a under the terms of the agreement the individual receives, within three years of the initial disposal, a share of any profit made by the purchaser upon the purchaser’s disposal of, or of an interest in, the dwelling-house or part of the dwelling-house, and b the receipt of that sum would be treated (apart from this section) as a disposal falling within section 22 (disposal where capital sums derived from assets), that receipt shall be treated for the purposes of this Act as a gain attributable to the initial disposal but accruing to the individual at the time the sum is received.

3 In this section— “home purchase agreement” means an agreement— made with the employer or a person operating under an agreement with the employer (“the purchaser”), which includes a term entitling the individual to receive a share of any such profit as is mentioned in subsection (2)(a); “co-owner”, in relation to any individual (“A”), means another individual who holds an interest jointly or in common with A, whether or not the interests of the co-owners are equal.