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 entitlement to PPR relief where alterations are made to a residence or changes are made to the use of the residence during the period of ownership. For details of the period of ownership, see C3.1709A.
Effect on PPR relief of alterations to the residence and changes in use of the residence
Where there has been an alteration to the residence or a change in the use of the residence during the period of ownership, the legislation states that 'the relief ... may be adjusted in a manner which is just and reasonable'2.
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Web page updated on 17 Mar 2025 17:39