Jennifer Adams warns that capital gains tax principal private residence relief could be forfeited should a main residence undergo refurbishment.
Principal private residence (PPR) relief is one of the more valuable reliefs against a charge to capital gains tax (CGT) on the sale of a residential property. The relief is available on an individual's residence provided the house was occupied as their main residence throughout the period of ownership; the last nine months are also covered in the PPR claim. Furthermore, there are various provisions to cater for situations such as periods of absence.
Many taxpayers believe that if they have lived in the house as their main residence at any time, the entire period of residence and the last nine months are CGT-free. Whilst this may be true in most situations, there are conditions to the relief, one of which is that the property must not have been purchased ‘wholly or partly
