CGT—PPR relief for UK residents with overseas dwellings and non-UK residents with UK dwellings


Produced in partnership with Alison Cartin of Taylor Wessing LLP
Practice notes

CGT—PPR relief for UK residents with overseas dwellings and non-UK residents with UK dwellings


Produced in partnership with Alison Cartin of Taylor Wessing LLP

Practice notes
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Principal private residence relief (PPR relief) exempts part or all of the gain realised on the disposal of an individual’s dwelling-house from Capital gains tax (CGT) if the dwelling–house has been their only or main residence at some point during their period of Ownership.

UK resident taxpayers can claim PPR relief on the disposal of a UK residence or a non-UK residence. Non-UK resident individuals can claim PPR relief on the disposal of a UK dwelling-house.

From 6 April 2015, an individual’s residence will not be eligible for PPR relief for a tax year unless the individual:

  1. •

    was resident in the country in which the dwelling-house is located in that tax year; or

  2. •

    spent at least 90 nights in the dwelling-house (or dwelling-houses in the same country) in the tax year

Principal private residence relief: the basics

Gains realised on the disposal of an individual’s dwelling-house are, generally, exempt from CGT if the dwelling–house has been their only or main residence throughout

Alison Cartin
Alison Cartin

Associate Director, Taylor Wessing LLP

Alison is a Knowledge Development Lawyer for the Private Client Group, responsible for the team's know how and training needs and monitoring legal and market developments. She regularly leads both in-house and external client training events and writes materials for the Bryan Cave Leighton Paisner Tax blog and clients. Prior to becoming a Knowledge Development Lawyer in 2004, Alison advised high net worth individuals and the international wealth management institutions that serve them on the full spectrum of contentious and non-contentious private client issues. She has extensive experience advising on cross-border tax and wealth planning issues and has been involved in advising governmental and regulatory bodies on the cross-border exchange of information in tax matters and international tax agreements. She is a member of the Society of Trust & Estate Practitioners (STEP).

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Capital gains tax definition
What does Capital gains tax mean?

Tax that is payable on the capital gain of an investment following its sale at a profit. UK pension funds are exempt from CGT.

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