Based on the tax legislation
Principal private residence relief is only available to:
- individuals
and
- the trustees of settled property.
However under ESC/D5 they will allow relief to any executor on the disposal of a house which both before and after the deceased person's death was the only or main residence of individuals who are entitled to the whole or to substantially the whole of the proceeds of sale of the house.
Substantially the whole' means at least 75%.
So in this case unless there is a single beneficiary entitled to at least 75% of the proceeds and who occupied it as a main residence no relief would be due.
Of course you could always consider a deed of variation to transfer interests in the property to ensure 1 beneficiary had an entitlement to at least 75%.
