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TAXguide 07/19: A Guide to Principal Private Residence relief

Questions around the tax treatment of someone’s principal private residence (PPR) arise with some frequency and all too often the answer is not as straightforward as might first appear. This guide considers the core rules, the traps and the key items to be aware of to help clients through this area of tax law.

TAXguide 07/19

Tax faculty members can download this guidance in full

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Overview

Capital gains tax (CGT) principal private residence relief (PPR) is one of those areas of the tax legislation where everyone thinks that they know the rules but, in reality there are so many nuances in them that it is easy to fall unwittingly into a tax trap. This TAXguide is an update of chapter one from the 2012/13 TAXline Tax Planning book, a guide to principal private residence relief, written by Robert Maas. Since its publication there have been a number of additional tax cases, adding to the surprisingly high number that existed at that time, as well as some legislative changes.

The full 11 page guide covers:

  • Introduction
  • The legislation
  • What is a dwelling house?
  • What is a residence?
  • Tribunal decisions
  • Capital gains tax versus income tax
  • The PPR election
  • Land
  • The relief
  • Let property
  • Losses
  • Restrictions
  • Other matters