Answers · UK 2025/26
What is Private Residence Relief (PRR) for UK CGT?
Private Residence Relief makes the sale of your main home 100% CGT-free. You qualify if the property was your only or main residence for the entire ownership period. Final 9 months always exempt. Letting Relief still available for periods you actually lived there.
Full answer
UK Private Residence Relief (PRR) exempts the sale of your only or main home from Capital Gains Tax. Full relief: if the property was your only or main residence for the entire ownership period, the gain is 100% tax-free. Final 9 months: the last 9 months of ownership are automatically deemed PRR-qualifying, regardless of actual use — useful when you move out before selling. The period is 36 months for those with disabilities or moving into care. Multiple homes: only one property can be your main residence at any time. Married couples and civil partners can only have one between them. You can make a "Section 222 election" within 2 years of acquiring a second home to nominate which is your main residence — strategically useful for high-value second properties. Partial relief: if the property has been let or used for business at times, gain is apportioned. Letting Relief: since April 2020, available only if the owner lived in the property at the same time as letting it out (e.g. letting a room while in residence) — capped at lower of £40,000 or PRR amount. Reporting: gains must be reported within 60 days of completion via HMRC's Property Reporting Service.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.