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 in relation to spouses and civil partners.
Application of PPR relief to spouses and civil partners
PPR relief is given special application to spouses and (from 5 December 2005) civil partners.
Married couples or civil partners may have only one residence or main residence between them whilst they are living together2. A couple is treated for these purposes as living together unless they are separated under a court order, a deed of separation or are otherwise separated in circumstances where it is likely to be permanent3.
Case law on residence during period of separation
In Benford4,
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