Principal Private Residence Relief (PPR)
UK tax glossary · Last reviewed: April 2026
Principal Private Residence Relief (PPR) eliminates CGT on gains from selling your main home. The relief covers the period you lived in the property as your main residence plus the final 9 months of ownership (regardless of whether you still live there).
PPR is proportional where the property was not your main home for the entire period of ownership. The proportion of time it qualified as your main residence determines the exempt gain; the remainder is taxable.
Lettings Relief, which used to exempt up to £40,000 of gains where a property was once a main home and later let, was significantly restricted from April 2020. It now only applies while the landlord is resident in the same property as the tenant.
Worked example
Owned for 10 years. Lived in as main home for 6 years; let for 4 years. Last 9 months count as PPR. Qualifying period: 6 years + 0.75 years = 6.75 years. PPR fraction: 6.75/10 = 67.5%. Total gain £100,000. Exempt: £67,500. Taxable: £32,500 (less AEA).
Common questions
Can I have PPR on two properties at the same time?
No. PPR applies to only one property at a time. If you own two properties, you must elect which is your main residence. The election can be retrospective for up to two years after both properties are owned.
Is PPR lost if I use part of my home exclusively for business?
PPR is restricted for any part of the property used exclusively for business purposes (e.g. a dedicated office). The restriction is proportional to the business-use area.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.