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.

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