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FAQ: I own a flat through shares in a share block company. I reside in the flat when on holiday, and rent it out the rest of the year. What will the CGT implications be if I sell my shares in the share block company?

The definition of “an interest” in paragraph 44 of the Eighth Schedule includes a share owned directly in a share block company. The primary residence exclusion can therefore potentially apply to a capital gain or loss on disposal of such shares if the residence is used as a primary residence.
However, in this case the capital gain or loss made on the sale of the shares cannot be disregarded because the flat will not qualify as a primary residence.
One of the basic requirements for a flat to qualify as a primary residence is that the owner, beneficiary of a special trust, or spouse of the owner or beneficiary must ordinarily reside in the home and must use the home for domestic purposes as his or her ordinary residence.

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