Private residence relief
The private residence relief is a Capital Gains Tax relief that you get when you sell your home if it was your main home for the entire time you owned it.
You also need to fit these criteria to qualify:
- you have not rented it out (doesn’t count if you just rented a room to one tenant – you can still get the relief in this case)
- and you didn’t use a part of it only for business
- and the total area is less than an acre
- and, finally, you didn’t buy it just to make a profit (basically it wasn’t an “investment property”).
If you qualify, you don’t need to pay any Capital Gains Tax at all when you sell your home. Whatever profit you make is entirely tax-free.
You also don’t need to claim this relief – you should get it automatically.
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