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 interaction between PPR relief and holdover relief under TCGA 1992, s 260. Holdover relief allows a gain to be deferred where it arises on a disposal that is a chargeable lifetime transfer for inheritance tax purposes. For detailed commentary on holdover relief, see Division C3.16.
Note that there are separate anti-avoidance measures that restrict holdover relief where the settlor has an interest in the recipient trust2. See C3.512.
Interaction between holdover relief and PPR relief
Anti-avoidance measures exist which are designed to prevent an individual or trustees from obtaining PPR relief on the disposal of a property in respect of which a claim
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