Most of us know that we don’t have to pay capital gains tax if we make a profit on the sale of our home.
But the relief is not always as straight forward as it seems.
The relief known as Principal Private Residence Relief (‘PPR’) applies if you own a home in the UK and have lived in it throughout ownership until sale. However, this is not an automatic exemption from tax.
Here are some points to watch out for:
• If you have lived in a property and then move out, the last 18 months of your ownership will always count towards your period of occupation.
• A married couple can only have one PPR between them. If you have more than one property you need to decide which is your PPR.
• The property does genuinely need to be your home. There is no minimum length of time. Indicators include size of utility bills at the property, invoices for home insurance, phone bills, DVLA records, credit reference agency records, council tax records & electoral roll details.
For more information please contact Lesley Sutton on 01484 538351 or email firstname.lastname@example.org.