United Kingdom guide
Private Residence Relief explained
Private Residence Relief removes the part of the gain that covers the time a property was your only or main home, plus the final 9 months of ownership. If you lived there for the whole period you owned it, the sale is normally free of capital gains tax.
| Covers | Time as main home plus final 9 months |
| Formula | Gain × relief months ÷ ownership months |
| Full relief | When it was always your main home |
| No relief | Second homes never lived in |
How is Private Residence Relief worked out?
Relief is the gain multiplied by the number of months the property was your main home, plus the final 9 months, divided by the total months you owned it. The final 9 months always qualify as long as the property was your main home at some point.
What if I own more than one home?
If you have two homes you can nominate which one counts as your main residence for the relief, within strict time limits. Only one property qualifies at a time for a couple.
Worked example, partial relief
| Gain | £120,000 |
| Owned 10 years, main home 6 years, so relief covers 81 of 120 months | −£81,000 |
| Chargeable gain | £39,000 |
| Annual exempt amount | −£3,000 |
| Taxable gain | £36,000 |
| Estimated tax | £8,640 |
Relief months are the 72 months lived in plus the final 9 months.
Try your own figures in the United Kingdom capital gains tax on property calculator.
Common questions
Does the final 9 months always count?
Yes, as long as the property was your only or main home at some point during your ownership.
Do I lose relief if I rent the property out?
Letting the property means the let period is not covered, except where it overlaps with the final 9 months or a period you also lived there. Narrow lettings relief rules can apply.
This is an estimate for general information only, not tax, legal or financial advice. Tax rules are complex and depend on your circumstances, and figures may not reflect the latest changes. Confirm your position with HM Revenue & Customs (gov.uk) or a qualified tax adviser before acting. The terms of use set out the limits of this estimate and of our liability.
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