Capital gains tax relief is available for gains on the disposal of a dwelling house which has been the taxpayer’s only or main residence. The mechanics of the relief and the occupation and deemed occupation periods are discussed in the Principal private residence relief ― basic principles guidance note. This guidance note discusses the implications of having more than one residence and the impact on the amount of the principal private residence (PPR) relief claim.

Where a married couple or civil partners are living together, the legislation states that they only have one main residence per couple and any nominations for the main residence must be signed by both parties (see below). Unmarried couples are dealt with as individuals and can each have a separate main residence. TCGA 1992, s 222(6)(a)

Other joint owners of a residence living together (eg unmarried couples, relatives, friends) are treated as each having an undivided share in the entire property, and therefore full PPR on sale, provided each person has unrestricted access to the whole property. Unrestricted access is not the same as use. For example, occupation of separate bedrooms does not prevent PPR relief being available to all owners on disposal of the property.

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