The UK tax system has traditionally exempted any profit on the sale of a person’s principal private residence (PPR) from Capital Gains Tax (CGT). The exemption applies to make any gain accruing during periods of use as a PPR exempt from charge.

A property which has been used as the actual PPR for part of the period of ownership, but not all, may therefore attract a charge to CGT.

One valuable relief is that the last three years of ownership of a property have been deemed to be a period of actual residence whether or not the owner(s) actually resided there.

With the logjam in the property sales market now clearing, the Chancellor of the Exchequer sprung a surprise in his recent Autumn Statement by reducing the ‘deemed actual residence’ period to 18 months for sales which take place after 5 April 2015.


    Get in touch

    Discuss your situation with an experienced Solicitor by filling out the form below or by ringing us on 0208 735 9770.

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.