Capital gains tax relief is available for gains on the disposal of a dwelling-house which has been the taxpayer’s only or main residence. The mechanics of the relief and the occupation and deemed occupation periods are discussed in the Principal private residence relief ― basic principles guidance note. This guidance note discusses the anti-avoidance provisions that exist to prevent taxpayers from abusing the generous principal private residence (PPR) relief provisions to avoid paying capital gains tax on their houses.

The anti-avoidance provisions apply where:

1. •

   the tax year is non-qualifying for the taxpayer

2. •

   there is exclusive business use of part of the residence

3. •

   the residence was acquired with the intention of making a profit

Also considered in this guidance note is the application of pre-owned asset tax where the family home is gifted in a scheme designed to avoid inheritance tax.