Broadly speaking a gain arising on the disposal of a person's residence (dwelling house and garden/grounds, ie their home) is exempt from capital gains tax (CGT)1. This exemption is known by many names, including principal private residence (PPR) relief, private residence relief, private residence exemption, main residence exemption, or only or main residence relief.
For an overview of the relief, see C3.1701.
The commentary below considers the entitlement to PPR relief where a dependent relative occupied the residence prior to 6 April 1988. Where the conditions are met, PPR relief may be available on the property that has been occupied by the dependent relative in addition to the PPR relief that applies to the disposal of the owner's residence2.
Occupation of the residence by a dependent relative before 6 April 1988
PPR relief may be available in respect of a dwelling house
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