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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 is very straightforward: provided that you only own one home at a time.

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

Subscriber guide to PRR 
This covers the detailed rules and reviews latest case law on this ever changing area of tax. 

What's new?

What's new in legislation?

It is proposed that from 6 April 2020:

From 6 July 2016:

From 6 April 2016:

From 6 April 2015: 

From 6 April 2014:

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