Jackson-Scott Associates Chessington

Tax Helpsheets · Capital Taxes

CGT and Your Principal Private Residence

Understand when selling a home may produce a taxable gain and which records help establish relief.

A sale of your only or main home will often qualify for Private Residence Relief. Full relief depends on how the property has been owned and used; living there at some point does not automatically exempt the whole gain.

Build a history of the property

Record when you acquired it, when you lived there and any periods of absence. Keep details of letting, business use and other homes available to you.

Where more than one property is used as a residence, a nomination may be relevant. Eligibility and timing need checking rather than choosing a property only when it is sold.

Look at changes of use

Letting part or all of a property can affect the calculation. Letting relief has specific conditions and should not be assumed to cover any former home.

Exclusive business use of part of the property also needs review. The actual use matters; a token personal item in a room is not a sound basis for a tax claim.

Certain absences and the final period of ownership may qualify for relief, subject to conditions. Larger grounds or a separate sale of land can also need special consideration.

Review the disposal

Repeated property purchases and sales undertaken for profit may raise trading questions rather than simply a claim for home-sale relief.

Use the official Private Residence Relief guidance for the current conditions and reporting requirements. We can help organise the occupation history and assess which parts of a gain may remain taxable.

Talk it through with us

Thinking of selling a home that has been let or used for business? Talk to us before the sale.

Get in touch