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 period of ownership for the purposes of PPR relief.
Period of ownership for PPR relief
For PPR relief purposes, the period of ownership generally begins on the date the dwelling house was first acquired, or on 31 March 1982 if that is later. It ends when the property is subject to disposal2.
Example 1
Miss Smith acquired a house under the will of her late mother in July 1979. The probate value was £20,000. She let the house until the end of 1981, when she began to occupy it herself as her main residence. The property was valued at £30,000
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