An individual is eligible for Principal Private Residence (PPR) relief when he sells his only or main residence, the gain is exempt from Capital Gains Tax (CGT). This document discusses the calculation of the relief, including conditions for deemed occupation, non-qualifying tax years, delay in taking up residence, the letting relief rules and the anti-avoidance rules.

Where an individual sells his only or main residence, generally the gain is exempt from capital gains tax (CGT) due to a relief referred to as the principal private residence (PPR) relief. PPR relief is not a statutory term but it is a phrase commonly used by tax professionals.

PPR relief may exempt all or part of a gain which arises on a property which an individual has used as his home. This is not a deferral relief; the gain is exempt, it does not come back into charge later.

The capital gain is calculated in the normal way, see the Basic calculation principles of capital gains tax guidance note. PPR relief (and possibly letting relief, see below) is then deducted to arrive at the chargeable gain.

Access this article and thousands of others like it free for 7 days
with a trial of TolleyGuidance.


Already a subscriber? Login

Request a Free Trial to TolleyGuidance to gain access to the full article

TolleyGuidance is produced by specialists within the field, our tax guidance materials provide actionable insights and practical guidance to support you day-to-day. We don’t just inform you about the latest changes in the tax world. We take the time to explain the implications and, most importantly, what actions you need to take for your clients.

A bit about you:

Please note that all fields marked with a * must be filled in
First name*
Last name*
Job title*