Commentary

C3.1701 Outline of Principal Private Residence (PPR) relief

Capital gains tax
Capital gains tax | Commentary

C3.1701 Outline of Principal Private Residence (PPR) relief

Capital gains tax | Commentary

Division C3.17     Principal Private Residence (PPR) relief

For updates affecting this Division please see Part C0 Updates

Principal Private Residence (PPR) relief from CGT

C3.1701 Outline of Principal Private Residence (PPR) relief

Broadly speaking a gain arising on the disposal of person's home is exempt from Capital Gains Tax (CGT) and this exemption is known as Principal Private Residence (PPR) relief. What qualifies as a 'home' depends on both the property's description and how it has been used over time. Where there are changes in the use of a property the exemption from CGT can be restricted. The amount of PPR relief is therefore dependant on a calculation that involves a number of elements which rely upon the information provided by the taxpayer.

Often, the quality of the information provided can be less than ideal especially in cases where the taxpayer is having to recall detail about the use of the property over a number of years. It is therefore essential that a time line is agreed with the taxpayer. HMRC may seek evidence to support the PPR exemption. Documentary evidence to support proof of address is a good starting point, but HMRC may seek further wide ranging evidence such as the registration of children in local schools, or dated photos demonstrating the use of the property (see C3.1704 for more on the type so evidence sought).

Key points and where to find further commentary

Key pointBrief summaryFurther commentary
The house and its groundsA gain

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