Print

An at a glance freeview guide to Capital Gains Tax (CGT) relief on the disposal of your own home.

At a glance

If you make a profit (a 'gain') when you sell your own home, that gain is tax free if you can meet all the conditions to claim CGT private residence relief (PRR).

This relief can be very straightforward if you: own one home at a time and have the required evidence to show that you meet all the qualifying conditions.

A claim for relief can be complicated if you own multiple properties or are developing properties.

In order to claim PRR:

It must have been:

The relief does not apply to commercial property.

The relief covers:

Permitted absenses

If you own two or more homes

Restrictions on the gain

Restrictions:

No relief is given if:

For gains accruing after 5 April 2015, no PRR is available in respect of:

There are special rules for married couples

More information

See: Private Residence Relief (subscriber guide)
What is Private Residence relief (PRR)? What are the qualifying conditions? Can you calim relief on two homes? How do you claim PRR? Can you claim PRR if you develop your garden? 

What's new?

What's new in legislation?

For proposals from 6 April 2020

Recent changes

What's new: review of recent tax tribunal decisions and precidents

See: Private Residence Relief (subscriber guide)

Tax Tips

Private Residence relief claims (or the lack of them) are regularly investigated by HM Revenue & Customs (HMRC).

The rules for this tax relief may become extremely complicated if you are:

You need to review the conditions for the relief and if any part of your gain on disposal is not covered by the relief notify HMRC of your 'charegability to tax'. You will then be asked to complete a tax return.

Tax Tips: elections and evidence

See: Private Residence Relief (subscriber guide) for answers to Tax FAQs, a summary of the essential requirements in terms of evidence and planinng points.