Mark McLaughlin looks at capital gains tax principal private residence relief when a house is held in a trust for a beneficiary to occupy.
Principal private residence (PPR) relief is probably the most well-known and commonly used capital gains tax (CGT) relief. In many cases, it exempts a gain on an individual’s disposal of a dwelling house which is an only or main residence.
PPR relief applies not only to disposals by individuals; the relief also applies to trustees, on gains from the disposal of settled property. A trust can be ‘express’ (i.e., by a trust deed) or ‘implied’ (i.e., by a person’s intentions and actions); this article focuses on the former.
PPR relief for trustees
PPR relief is available where, during the trustees’ period of ownership, the property was a dwelling house occupied as the only or
