The Principal Private Residence Relief ' Practical Problems During The COVID-19 Pandemic

• Published date: 14 April 2021
• Law Firm: Katten Muchin Rosenman
• Author: Ms Charlotte Sallabank and Kit Fowler

Principal private residence relief (PPR) provides an individual disposing of their main or principal place of residence (their 'dwelling-house' ' such term is not defined in the legislation, but generally includes buildings fit for human habitation and lived in) with relief from all or part of the capital gains tax (CGT) arising on such a disposal.

Broadly, in order to be eligible for PPR, the individual's dwelling-house must be the individual's only or main residence at some point during the individual's period of ownership, and the dwelling-house should not have been acquired in whole or in part for the purpose of realising a gain from the disposal of it (i.e., the dwelling-house was not acquired to be 'flipped').

There are, however, circumstances in which the use of PPR can be restricted or even entirely denied. Individuals should be aware that travel restrictions and working from home could bring two of these circumstances into play.

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