Principal private residence relief ― basic principles

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Principal private residence relief ― basic principles

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

For an overview of principal private residence (PPR) relief, see the Principal private residence (PPR) relief ― overview guidance note. This guidance note summarises further guidance and provides links to further details.

Where an individual sells their only or main residence, generally the gain is exempt from capital gains tax (CGT) due to a relief referred to as the PPR relief. PPR relief is not a statutory term, but it is a phrase commonly used by tax professionals. Other common terms for this relief include private residence relief (PRR) and only or main residence relief.

PPR relief may exempt all or part of a gain which arises on a property which an individual has used as their home. This is not a deferral relief ― the gain is exempt, it does not come back into charge later.

The capital gain is calculated in the normal way, see the Basic calculation principles of capital gains tax guidance note. PPR relief (and possibly lettings relief, see below) is then deducted to arrive at the chargeable

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+™
  • 21 Oct 2026 12:46

Popular Articles

Transfer of assets to beneficiaries ― legal, administration and tax issues

Transfer of assets to beneficiaries ― legal, administration and tax issuesThis guidance note outlines how assets are transferred to beneficiaries and the tax consequences that flow from the transfer. Whether a payment is income or capital is discussed in the Payments to trust beneficiaries guidance

14 Jul 2020 13:52 | Produced by Tolley Read more Read more

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more Read more

Withholding tax

Withholding taxIntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were

14 Jul 2020 14:01 | Produced by Tolley Read more Read more