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

What is Private Residence Relief (PRR)? What are the qualifying conditions? How do you claim PRR?

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 absences

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

What's new in legislation?

From 6 April 2020 see Private Residence Relief

Other recent changes:

Review of recent tax tribunal decisions and precedents

See: Private Residence Relief

Useful guides on this topic

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

Tax Tips

Private Residence Relief claims or the lack of them are regularly investigated by HMRC.

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

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 'chargeability to tax'. You will then be asked to complete a tax return.

Tax Tips: elections and evidence

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


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