Private Residence Relief

The private residence relief is a Capital Gains Tax relief that you get when you sell your home if it was your main home for the entire time you owned it.

You also need to fit these criteria to qualify:

  • You have not rented it out (doesn’t count if you just rented a room to one tenant – you can still get the relief in this case)
  • You didn’t use a part of it only for business
  • The total area is less than an acre
  • You didn’t buy it just to make a profit (basically it wasn’t an “investment property”)

If you qualify, you don’t need to pay any Capital Gains Tax at all when you sell your home. Whatever profit you make is entirely tax-free.

You don’t need to do anything in order to claim this relief – you should get it automatically.

Frequently Asked Questions

  • What is Capital Gains Tax?

    A capital gain is the difference between the price you buy your asset for and the price you sell for. When you make a profit on an asset, you may have to pay tax on it. In this instance, you may make a profit through accruing interest or selling a loan, so you may have to pay tax on this profit. To learn more about Capital Gains Tax, read our helpful glossary page!

  • Can you help me calculate my Capital Gain and Capital Loss?

    Of course we can! Get in touch with our experts today for comprehensive advice about Capital Gains Tax and everything that goes along with it.

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