STOP PRESS: The remittance basis is abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in FA 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

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