Private Residence Relief (UK capital gains)
Private Residence Relief can exempt all or part of an individual’s gain on disposal of a qualifying home according to the periods that qualify as occupation and other statutory conditions. For 2025–26, where the home has been the individual’s only or main residence at some point, the final nine months normally qualify even if not occupied; special rules may apply. A partially qualifying ownership period can require time apportionment. Other deemed occupation, letting, land and business-use rules are fact-specific, and the current TX guide excludes specified detailed topics.
Worked example
Assume a home is owned for ten years, occupied as the main residence for the first eight years, and the final nine months qualify separately; no other period qualifies and there are no other adjustments. Of a £100,000 gain, 8.75/10 × £100,000 = £87,500 is relieved, leaving £12,500 before other reliefs or exemptions.
Common mistake
Assuming that every home disposal is fully exempt, or counting a final qualifying period twice when it overlaps actual occupation.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |