Principal Private Residence (PPR) relief is the most significant
relief from Capital Gains Tax (CGT) on the sale of interests in
property. The relief applies to exempt any gain accruing on the
disposal of a dwelling-house which has been an individual's
only or main residence. Although the application of this relief is
straightforward in the majority of cases, it can raise
complications and opportunities in cases where an individual has
more than one property.
The general exemption
The exemption applies to either the whole, or a fraction of, the
gain attributable to the disposal of a dwelling-house, or part of a
dwelling-house which is, or has at any time in the individual's
period of ownership been his only or main residence. The exemption
also extends to the garden or grounds held for the individual's
own occupation and enjoyment with that residence.
