What is principal private residence relief?
Answered 11 March 2026
Here is a comprehensive explanation of Principal Private Residence (PPR) Relief:
What the law says
The core relief — TCGA 1992, s.222
PPR relief applies to a gain accruing to an individual on the disposal of, or of an interest in:
- (a) a dwelling-house (or part of one) which is, or has at any time during the period of ownership been, the individual's only or main residence, or
- (b) land occupied and enjoyed with that residence as its garden or grounds, up to a "permitted area" of 0.5 of a hectare (or a larger area if reasonably required for enjoyment of the residence).
Full relief — TCGA 1992, s.223(1)
No part of the gain is a chargeable gain if the dwelling-house has been the individual's only or main residence throughout the period of ownership, or throughout the period of ownership except for all or any part of the last 9 months of that period.
Partial relief — TCGA 1992, s.223(2)
Where full relief does not apply, a fraction of the gain is exempt. That fraction is:
- the length of the period(s) during which the dwelling-house was the individual's only or main residence (inclusive of the last 9 months in any event), divided by
- the total length of the period of ownership.
Periods of absence treated as occupation — s.223(3)
Certain periods of absence are treated as periods of residence, provided the dwelling was the individual's only or main residence both before and after the absence (conditions A and B). These include:
- Absences not exceeding 3 years in total (any reason);
- Any period working wholly outside the UK;
- Absences not exceeding 4 years where the individual was prevented from residing there due to the location of their workplace or an employer's condition reasonably imposed.
Nominating a main residence — s.222(5)
Where an individual has two or more residences, they may elect which is their main residence by notice to HMRC within 2 years from the beginning of the period in which both are held, with a right to vary the notice.
Married couples / civil partners — s.222(6)
There can only be one residence or main residence for both spouses/civil partners living together, and any election must be given by both.
Job-related accommodation — s.222(8)
If an individual resides in job-related accommodation and intends to occupy the dwelling-house as their only or main residence in due course, the dwelling-house is treated as occupied as a residence during that period.
Special cases
- Disabled persons / care home residents (s.225E): The final period is extended from 9 months back to 36 months where the individual (or their spouse/civil partner) is a disabled person or long-term care home resident with no other private residence.
- Adult placement carers (s.225D): Occupation of part of the dwelling by a placed person is disregarded when determining periods of only or main residence, and does not constitute business use.
HMRC guidance / practice
HMRC's detailed guidance on PPR relief is found in the Capital Gains Tax Manual starting at CG64200.
How the partial relief fraction works in practice:
HMRC illustrates the calculation as follows: where a taxpayer owned a flat for 198 months but occupied it as only or main residence for 71 months, the exempt fraction is (qualifying months ÷ total months) × gain. The last qualifying period (here a portion of the final 36 months under the then-applicable rules) is added to the actual occupation period before dividing.
Interaction with roll-over relief:
Where a gain has been rolled over into a property that later becomes the individual's only or main residence, PPR relief under s.223 is restricted to the part of the chargeable gain that exceeds the amount of the rolled-over gain.
Summary
In short, PPR relief is a capital gains tax exemption that shelters all or part of the gain on the sale of an individual's home. Full exemption applies where the property has been the individual's only or main residence throughout ownership (with a final 9-month grace period). Where there has been non-qualifying use or periods of absence, only a proportionate fraction of the gain is exempt.
Citation sources
Part 1 Income tax, corporation tax and capital gains tax Chargeable gains Capital gains tax private residence relief: adult placement carers 16 1 In section 223(8) of TCGA 1992 (amount of relief), before the “and” at the end of paragraph (a) insert— aa section 225D (private residence of adult placement carer), . 2 In section 224 of that Act (amount of relief: further provisions), insert at the end— 4 This section is subject to section 225D (private residence of adult placement carer). 3 In that
The normal rules of roll-over relief are modified where: · a chargeable gain has been deducted under sections 152 or 153 from the cost of furnished holiday accommodation, and · a gain to which section 222 (private residence relief, see CG64200+) applies accrues on the disposal of that accommodation On a disposal of that accommodation, private residence relief under Section 223 is restricted to that part of the chargeable gain which exceeds the amount of the gain rolled over. As an example, in
f absence not exceeding 4 years (or periods of absence which together did not exceed 4 years) throughout which the individual lived with a spouse or civil partner in respect of whom paragraph (c) applied in respect of that period (or periods), shall be treated as if in that period of absence the dwelling-house or the part of the dwelling-house were occupied by the individual as a residence if conditions A and B are met. 3A Condition A is that before the period there was a time when the dwelling-
as legatee, the other’s period of ownership shall begin with the beginning of the period of ownership of the one making the disposal, and b if paragraph (a) above applies, but the dwelling-house or part of a dwelling-house was not the only or main residence of both throughout the period of ownership of the one making the disposal, account shall be taken of any part of that period during which it was his only or main residence as if it was also that of the other. 8 If at any time during an indivi
PART 1 Income tax, corporation tax and capital gains tax CHAPTER 4 Other provisions Capital gains Relief on disposal of private residence 58 1 TCGA 1992 is amended as follows. 2 In section 223 (relief on disposal of private residence: amount of relief)— a in subsections (1) and (2)(a), for “36 months” substitute “ 18 months ” ; b omit subsections (5) and (6); c in subsection (8), omit the “and” after paragraph (aa) and after that paragraph insert— ab section 225E (disposals by disabled persons o
Part VII Other property, businesses, investments etc. Private residences Relief on disposal of private residence. 222 1 This section applies to a gain accruing to an individual so far as attributable to the disposal of, or of an interest in— a a dwelling-house or part of a dwelling-house which is, or has at any time in his period of ownership been, his only or main residence, or b land which he has for his own occupation and enjoyment with that residence as its garden or grounds up to the permit
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5A But a notice or further notice under subsection (5)(a) determining which of 2 or more residences is an individual’s main residence for any period may be given more than 2 years from the beginning of the period if during the period the individual has not held an interest of more than a negligible market value in more than one of the residences. 6 In the case of an individual living with his spouse or civil partner — a there can on
An ancillary building that is primarily used for non-residential purposes, perhaps a farmer’s barn but where the farmer occasionally garages his personal car, should be treated as non-residential property if the non-residential use is the primary use. Alternatively, if a property is a house that has two rooms used as a dental surgery and waiting room the property will be residential property as it is suitable for use as a dwelling. These issues have a close correlation with issues relevant in de
On 1 November 1989, Edward acquired a London flat from the trustees of his family trust. The trustees’ gain on that disposal was held over by a claim made jointly by the trustees and Edward under what is now s260 TCGA92 (see CG67030+). Edward occupied the flat as his only residence until 30 September 1995, when he moved to a house in the country and gave notice that this house should be treated as his main residence. Edward sold the London flat on 30 April 2006. The chargeable gain before any re
Part VII Other property, businesses, investments etc. Private residences Amount of relief. 223 1 No part of a gain to which section 222 applies shall be a chargeable gain if the dwelling-house or part of a dwelling-house has been the individual’s only or main residence throughout the period of ownership, or throughout the period of ownership except for all or any part of the last 9 months of that period. 2 Where subsection (1) above does not apply, a fraction of the gain shall not be a chargeabl