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Here is the guidance from the Low Incomes Tax Reform Group:
Originally, both foster carers and shared lives (adult placement) carers were denied PRR on the proportion of their residence that was set aside for the use of the children or adults in their care, because they were regarded for tax purposes as running a business. This has been changed and both foster and shared lives (adult placement) carers can claim capital gains tax PRR on any gain accruing to them from the disposal of their private residence, even where part of the house has been used for fostering or supporting a shared lives service user.
Accordingly, both foster carers and shared lives carers can now qualify for full PRR when they come to sell their residences in which they have looked after the children or adults in their care, provided that they satisfy the other conditions for the relief.'
PRR relieves CGT at 100%. Under the scenario set out yuo will have no CGT liability for the period of disabled occupation.