Tax Rates & Allowances

Tax Rates & Allowances

Private Residences

Main residence relief (also known as 'principal private residence relief (PPR)) exempts an individual from paying capital gains tax on the sale of (or an interest in) a dwelling that has been the individual's only or main residence, as well as land used as the residence's garden or grounds up to half a hectare, or more if the additional land is essential for the property's reasonable enjoyment.
For periods of occupation and some periods of considered occupation, the relief is time-based. If the property was the individual's only or principal residence at any point over the last 18 months of ownership, relief is allowed.
When a taxpayer owns two or more residences, he or she can choose which one will derecognize as his primary residence within specified time constraints. Married couples and civil partners are only allowed to have one principal residence at a time, which qualifies them for relief.

Relief from lettings

If the main residence has been wholly or partially let as residential accommodation at any point during the period of ownership, lettings relief can provide an exemption for gains up to the lower

• The gain attributable to the let period
• £40,000 per owner
• And the gain exempts as main residence relief.

As of April 6, 2020, the lettings relief has been abolished.