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
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For an overview of PPR relief, see the Principal private residence (PPR) relief ― overview guidance note. This 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 principal private residence (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

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  • 05 Sep 2025 09:40

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