Glossary · UK
What is Principal Private Residence (PPR)?
A CGT exemption for gains on the sale of your main home, covering the period you lived there plus the final 9 months of ownership.
Full Definition
Principal Private Residence relief exempts capital gains arising from the disposal of a taxpayer's only or main home. The exemption covers: (1) periods of actual occupation as the main residence; (2) the final 9 months of ownership automatically (even if the taxpayer has moved to a new home during this period); (3) certain absences while employed abroad, or any reason up to 4 years, provided the property is re-occupied before sale. If only part of the property qualifies (e.g., a portion let out as a separate dwelling), only that proportion of the gain is exempt. A nomination of main residence must be made within 2 years of acquiring a second property.