Answers · UK 2025/26
What is a Principal Private Residence election with HMRC?
If you own more than one home, you can nominate which one is your 'main residence' for CGT purposes by sending a written election to HMRC within 2 years of acquiring the second property. The nominated property gets full Principal Private Residence (PPR) relief when sold.
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Principal Private Residence (PPR) relief exempts your main home from Capital Gains Tax when you sell it. Most people with one home get full relief automatically. But if you own two or more properties that you genuinely occupy, you can elect which one is treated as your main residence. **Why it matters** Only one property can qualify as your main residence at any one time. If you have a London flat and a cottage in Devon and you split your time between them, without an election HMRC will determine main residence based on 'quality of occupation' -- essentially, which property you have the strongest connection to. An election lets you choose, potentially switching the relief to the higher-value property. **The 2-year rule** You must make the election within 2 years of acquiring the second property (the point when a genuine choice first becomes available). If you miss the window, HMRC decides on the facts -- and the window cannot be retroactively extended. **How to make an election** Write a signed letter to HMRC (no specific form required) stating that you nominate property X (give full address) as your main residence from a specified date. Both spouses/civil partners must sign if they jointly own properties. Send to: HMRC, Capital Gains Tax, PAYE & Self Assessment, BX9 1AS. **Varying the election** You can change the nominated property at any time by making a new election. This flexibility is used in the 'final period exemption' strategy: switch the election to a property you are about to sell, giving it the 9-month final-period PPR relief, even if you have not lived there recently. **Final period exemption (2026/27)** The last 9 months of ownership of a formerly main residence always qualifies for PPR, even if you are not living there at the point of sale (reduced from 18 months pre-April 2020, and 36 months before April 2014). **60-day reporting rule** If PPR does not fully cover the gain and there is a taxable amount, you must report and pay CGT within 60 days of completion.
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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.