Private Residence Relief

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Our aim: 100% compliance with legislation

Principal Private Residence relief

When you sell your home it is normally exempt from Capital Gains Tax (CGT). It’s known as Principal Private Residence relief

Each unmarried person, and each legally married couple, are entitled to the relief on their only or main residence

For this to apply, the property must genuinely be your private residence

Take great care. You’re just a quick Google away from plenty of schemes and scams which could land you in very hot water. Seems there’s a whole range of advisors for whom ‘too far’ is part of the brand

Top-tip: leave well alone and, remember, the tax authority has Google too!

It’s not set in tablets of stone as to how long you must live in the property to establish it as your private residence. It is the ‘quality of occupation’ that matters, not the time

There are some widely accepted principles. You should:

There have been exceptions and shorter periods have sufficed but erring on the side of caution will likely stand you in good stead..

It may be possible to simply elect for the property to be treated as your main residence but it must be genuine and it’s good practice to apply as many of the above principles as possible

Remember; you may be called upon to prove it – so keep records

 Inherited Property

If you’ve suffered loss of a loved one there’s no easy way beyond this point, but it’s not all doom and gloom, and here’s why:

Generally, the cost of inherited property is based on the value of the property at the time of the previous owner’s death

Broadly, the tax treatment is as though the property was purchased on that date

If a property is sold by the deceased’s estate, the tax treatment is as though it was acquired at full market value on the date of the deceased’s demise

Transfers of property from the deceased’s estate are exempt from Capital Gains Tax

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