Demeter is seeking advice on the relief(s) available to reduce the chargeable gain on the sale of his house.

Demeter:
– Is UK resident and domiciled.

– Will be a higher rate taxpayer in all relevant future tax years.

– Has relocated to London, from Manchester, a city more than 150 miles north of London, to take up this employment.

House in Manchester:
– Demeter purchased the house on 1 May 2005 and lived in it as his main residence.

– Demeter let the top floor of the house (comprising 30% of the total house) to tenants from 1 May 2007 to 31 October 2018. The tenants did not share Demeter’s living accommodation or take meals with him.

– Demeter continued to occupy the remainder of the house as his main residence until 31 October 2018, when the entire house was sold.

– The sale gave rise to a gain, before any reliefs, of £94,000.

– Demeter did not own any other house throughout the period from 1 May 2005 to 31 October 2018.

Required:
(b) Identify, and calculate, with brief explanations, the relief(s) available to Demeter to reduce the chargeable gain of £94,000 on the sale of his house in Manchester on 31 October 2018. (6 marks)