Broadly speaking a gain arising on the disposal of a person's residence (dwelling house and garden/grounds, ie their home) is exempt from capital gains tax (CGT)1. This exemption is known by many names, including principal private residence (PPR) relief, private residence relief, private residence exemption, main residence exemption, or only or main residence relief.
For an overview of the relief, see C3.1701.
The commentary below considers the meaning of residence and the nomination of a main residence where an individual has more than one residence.
PPR relief—assets that qualify for relief
PPR relief applies in respect of a disposal by an individual of, or of an interest in2:
- Ìý
•ÌýÌýÌýÌý a 'dwelling house' or 'part of a dwelling house' that is, or has at any time in the period of ownership been, the taxpayer's only or main 'residence' (see below), or
- Ìý
•ÌýÌýÌýÌý land (including buildings)3 which the taxpayer occupies and enjoys with that residence as its garden or grounds up to the permitted
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Web page updated on 17 Mar 2025 17:13