What is the final period exemption for CGT on a main home?
Answered 17 March 2026
Here is a comprehensive answer on the final period exemption for CGT on a main home.
Final Period Exemption for CGT on a Main Home
What the law says
The final period exemption is provided by s.223(1) and (2)(a) TCGA 1992. Where a dwelling-house has been an individual's only or main residence at some point during their period of ownership, the final portion of the ownership period is always treated as a qualifying period for Principal Private Residence (PPR) relief, regardless of how the property is used during that final period.
Current rule (disposals on or after 6 April 2020): The final period is 9 months, reduced from 18 months by Finance Act 2020.
Exception – disabled persons and care home residents (s.225E TCGA 1992): Where, at the time of disposal:
- the individual (or their spouse/civil partner) is a disabled person or a long-term resident in a care home, and
- neither the individual nor their spouse/civil partner has any other relevant right in relation to a private residence,
then the 9-month final period is extended to 36 months. A "long-term resident" means someone who is resident in a care home and has been, or can reasonably be expected to be, resident there for at least three months.
Historical periods: | Disposal date | Final period | |---|---| | On or after 6 April 2020 | 9 months | | 6 April 2014 – 5 April 2020 | 18 months | | 10 December 2003 – 5 April 2014 | 36 months |
HMRC guidance / practice
HMRC's Capital Gains manual (CG64985) confirms the current final period is 9 months for disposals on or after 6 April 2020, with the extended 36-month period available for disabled persons or persons in care homes under s.225E TCGA 1992.
Key practical point – the exemption applies "in any event": Although the final period exemption is intended to assist owner-occupiers who cannot find a buyer, HMRC confirms it applies "in any event" under s.223(2) TCGA 1992. This means the final period will always qualify for relief if the dwelling-house was the owner's only or main residence at any point during their period of ownership — regardless of how the property is actually used during that final period (e.g. if it is let out).
Practical example (HMRC): A property purchased on 1 January 2007 and sold on 31 December 2019, occupied as a main residence until 31 December 2012 and then let, would attract PPR relief for 6 years of occupation plus the final 18 months (applicable for that disposal date), out of a 13-year ownership period.
Citation sources
A dwelling-house was purchased on 1 January 2007 and sold on 31 December 2019. It was occupied as its owner’s only or main residence from 1 January 2007 to 31 December 2012. It was let as residential accommodation from 1 January 2013 until it was sold at a gain of £150,000. The computation is: £ £ Net gain 150,000 Private residence relief (£150,000 x (6 years + Final 1½ years*) ÷ 13 years) 86,539 63,461 Relief under s223(4) TCGA92 limited to the lowest of private residence relief
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
If a dwelling-house has been used as its owner’s only or main residence at some time in his or her period of ownership, then the following final part of the period of ownership will always qualify for relief. For disposals on or after 6 April 2020 the final period of ownership that qualifies for relief is 9 months, unless the disposal is by disabled persons or persons in care homes etc. and s225E TCGA92 applies (see CG64986). For disposals on or after 6 April 2014 but before 6 April 2020 the fin