United Kingdom Private Residence Relief
Private Residence Relief can remove Capital Gains Tax on a home sale when all the full-relief conditions apply. Time away and the final ownership period have separate rules.
- Full relief
- Automatic where all the published conditions apply.
- Grounds condition
- Less than 5,000 square metres, including all buildings.
- Final period
- Last 9 months, provided the home was an only or main residence at some point.HMRC, Living away from your home
When full relief applies
HMRC states that no Capital Gains Tax is payable on a home disposal where all the published conditions apply: one home, occupied as the main home throughout ownership; no part let out, apart from a lodger; no part used exclusively for business; grounds including buildings below 5,000 square metres; and no purchase solely to make a gain. HMRC, Private Residence Relief (opens in a new tab).
Occasional or temporary use of a room as an office does not count as exclusive business use. Where all the conditions apply, Private Residence Relief is automatic. Married couples and civil partners can count only one property as their main home at a time. HMRC, Private Residence Relief (opens in a new tab).
The final 9 months
The last 9 months before sale qualify for relief even if the owner lived elsewhere then, provided the property was their only or main residence at some point during ownership. HMRC, Living away from your home (opens in a new tab).
For an owner with only one home who is disabled or in long-term residential care, HMRC describes relief for the last 36 months. Historical sales have different final-period rules. HMRC, Living away from your home (opens in a new tab).
Time away and limits
Living away from a home can reduce relief, although qualifying periods of absence can receive relief. HMRC guidance describes conditions for absences for work and other reasons, including residence before and after the absence unless work prevented it. HMRC, Living away from your home (opens in a new tab).
Different rules apply to people who are not resident for tax purposes. In most cases, only one home receives relief for any period, with exceptions for periods that always qualify. HMRC, Living away from your home (opens in a new tab).
Scope
This is general information adapted from government material under the Open Government Licence v3.0, without endorsement or a recommendation. It does not assess individual entitlement or liability. No matching calculator or worked example is available here.