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 PPR relief available on (a) the disposal to a relocation company and (b) the grant of an option to purchase the residence.
PPR relief on the sale of the residence to a relocation company/employer
An individual may sell their home to a relocation company rather sell their property via conventional methods. This may be necessary where the individual needs to relocate quickly and requires the funds to purchase another property, however the price of sale is likely to be well below the market value of the property. Often, to sweeten the deal, the relocation company agrees that if the
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Web page updated on 17 Mar 2025 17:03