Sarah Bradford explains how qualifying absences can reduce the capital gains tax bill on the sale of a former home.
If you have lived in a property at any point as your only or main residence, you may qualify for principal private residence (PPR) relief for certain periods during which you were not actually living in the property.
This can be particularly useful from a tax saving perspective, reducing the capital gains tax (CGT) payable on any gain realised on disposal.
Nature of PPR relief
PPR relief is a CGT relief, which means that you do not pay CGT on any gain that relates to a period for which a property was your only or main residence. A person can only have one ‘main’ residence for CGT purposes at any time, and married couples and civil partners can only have one main residence between them. Further, a property can only count as a main
