Relief on the disposal of a private residence (or ‘principal private residence (PPR) relief, as it is commonly known) is sufficient to shelter gains on the disposal of an individual’s only or main residence from capital gains tax in most instances, where the qualifying conditions are satisfied. Is it permitted? One of the limitations in… Read More »
Principal private residence (PPR) relief for capital gains tax purposes is available on most disposals by individuals of their dwelling-house. The assumption is normally that any capital gain will be subject to PPR relief. Unfortunately, this assumption is not always correct. Is it ‘occupied’? PPR relief broadly applies to gains accruing to individuals on the… Read More »
Most individuals owning a house will be aware of the principal private residence (PPR) relief rules for capital gains tax purposes. The PPR rules require that the dwelling has been occupied as the individual’s only or main residence at some point during their period of ownership (TCGA 1992, s 222(1)). Two fundamental requirements sometimes overlooked… Read More »
The principal private residence (PPR) relief rules for capital gains tax purposes require a dwelling to have been a ‘residence’ of the individual to whom the gain accrues (TCGA 1992, s 222(1)). What is a ‘residence’? The term ‘residence’ is not defined in the PPR relief legislation. However, case law indicates that the requirement for… Read More »
An individual might occupy a dwelling for only a short period of time before selling it. They will normally hope to be entitled to principal private residence (PPR) relief for capital gains tax purposes in respect of a gain on disposal. However, a common question in such circumstances is: ‘how long does an individual need… Read More »
A change in personal circumstances can have tax implications, such as affecting the availability of capital gains tax principal private residence (PPR) relief. For example, a house might be occupied for only a short time before sale, due to a change of plans following a relationship breakdown. ‘Safe’ occupation? A common question asked by house… Read More »