Stressed by tax?
Get Earnr Pro

Private Residence Relief

[ˈpraɪvɪt ˈrɛzɪdəns rɪˈliːf]



Private Residence Relief is a tax relief for Capital Gains tax that qualifying individuals automatically get when they sell their primary residence.

More detail:

Private Residence Relief is a tax relief available to homeowners in the United Kingdom. It allows qualifying individuals to avoid paying Capital Gains tax on the sale of their primary residence.

To qualify, an individual must be selling their primary home that has been their main home since they have owned it. They also must have not rented the house out, used any part of it just for business, and the grounds must not be more than 5000 square metres.

If you do qualify, the tax relief will be automatically applied and you will not have to pay any tax.

Married couples or Civil Partners can only count one property as their main home at a time.

Back to Taxionary

You might also like...

decorative image for a blog

What is IR35 and do I need to worry about it?

There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.

Read more
decorative image for a blog

Flat rates for mileage vs actual expenses. What is better?

Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.

Read more
decorative image for a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr