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Principal private residence (PPR) relief from CGT

C3.1701 Principal private residence (PPR) relief—overview

Broadly speaking a gain arising on the disposal of person's residence (dwelling house and garden/grounds, ie their home) is exempt from capital gains tax (CGT)¹. This exemption is known by many names, including principal private residence (PPR) relief, private residence relief, private residence exemption, main residence exemption, or only or main residence relief.

What qualifies as a residence 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.