CGT—PPR relief
CGT—PPR relief

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • CGT—PPR relief
  • What is principal private residence relief?
  • Dwelling house
  • Subsidiary buildings
  • Gardens and grounds—the permitted area
  • What is a residence?
  • Conclusion from the case law
  • What is the period of ownership?
  • Burden of proof
  • How is PPR relief calculated?
  • More...

FORTHCOMING CHANGE: As originally announced at Budget 2018, the government ran a consultation between 1 April and 1 June 2019 on proposals to curtail capital gains tax (CGT) principal private residence (PPR) lettings relief in order to better target the relief at owner occupiers and to reduce the automatic final period exemption for PPR relief from 18 months to nine months except in specified circumstances, as well as some technical aspects of the operation of the relief. On 11 July 2019, the government published a policy paper, draft legislation and an explanatory note. These changes, if enacted as part of Finance Bill 2019–20, will take effect from April 2020. For more information, see News analysis: Draft Finance Bill 2019–20—Private Client analysis.

What is principal private residence relief?

Principal private residence (PPR) relief is a relief from capital gains tax (CGT). It is available on the gain realised on the disposal of a dwelling house or land occupied and enjoyed with the dwelling house, which is or has at any time during the period of ownership been the only or main residence of the owner. The residence can be either a UK residence or an overseas residence (subject to certain conditions regarding the taxpayer’s tax residence status). If it has not been the only or main residence throughout the period of ownership (subject to certain permitted absences)

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