Selling your home

Thinking of selling your home but concerned about tax implications? Don’t worry, there are reliefs available to ease the process.

Private Residence Relief (PRR)

In most cases, the sale (or "disposal") of your home is exempt from Capital Gains Tax (CGT) through Private Residence Relief (PRR). You can qualify for this exemption if the following conditions apply:

• You have one home and you’ve lived in it as your main residence for the entire period you’ve owned it
• You have not let part of it out, this does not include having a lodger
• You haven’t used a part of your home exclusively for business purposes (using a room as a temporary or occasional office does not count as exclusive business use)
• The grounds, including all buildings, are less than 5,000 square metres in total
• You did not buy it just to make a gain

Need help determining if you’re eligible for Private Residence Relief? Contact us.

Key tax planning tip: The principal private residence exemption covers the period during which the property was your main residence plus your last 9 months of ownership.

Period of absence

Periods of absence from your home may still qualify for Private Residence Relief from Capital Gains Tax under specific conditions:

• Absences of up to three years for any reason
• Absences whilst carrying out work outside the UK
• Up to four years if your job required you to live elsewhere

These can all be treated as periods of residence. This relief also applies if you lived with a spouse or civil partner during their employment-related absence. These conditions ensure that you remain eligible for tax relief even if you weren't physically living in your home during these periods. For more information on the conditions of what qualifies as a period of absence visit HMRC or contact us.