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 which periods of absence can be deemed to be periods of occupation for PPR relief. It also explains how to calculate the taxable gain.
Introduction
Where the house has been the owner's only or main residence throughout the whole period of ownership, PPR relief extends to the whole of any gain arising on disposal. Conversely, where a dwelling house has not been occupied as an individual's only or main residence (or is not deemed to be so occupied) throughout the period of ownership, PPR relief is only available for a proportion of the gain. However, the legislation treats certain periods of absence as deemed
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