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 anti-avoidance provision that limits PPR relief where there is an intention to realise a gain on the dwelling house.
Intention to realise a gain on the dwelling house
PPR relief and lettings relief are not available if2:
- Ìý
•ÌýÌýÌýÌý the dwelling house or part of a dwelling house was purchased wholly or partly for the purpose of realising a gain, and/or
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•ÌýÌýÌýÌý expenditure is incurred wholly or partly with the intention of producing a gain. In that situation, PPR relief relating to that part of the gain to which the expenditure relates is denied. See 'Incurring
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