CGT on Transfer of Equity and Private Residence Relief

Hello, I've got a couple of questions regarding the above. I'm splitting with my partner, not married, and we own a property with a 50:50 split. We started transfer of equity process and I will be moving out and will be getting the consideration sum on the completion and my ex-partner will be taking full ownership of the property. The transfer will be completed on 1st October. I believe that the PRR applies to me and I should not pay any CGT on the buyout money as this was my main residence since we bought it, expect holidays or short work trips there was no absence and it was never used for business purposes. Here are my 2 questions: 1. Do I still need to complete the self assessment tax return, or notify HMRC in any way, even if PRR applies and there is no tax to pay? 2. Am I correct in thinking that I must reside fully in the property until 1st October and not move out before then for the PRR to be applicable, even if we sign th transfer deed before then? In other words, if I find another accomodation and move out before 1st October will I lose the PRR and will need to pay the CGT? Any advice will be appreciated. Thank you

Good morning, I think I managed to get some answers to my questions above, but would appreciate a confirmation that my findings are correct. 1. When the full PRR applies and there is no tax due, I do not need to notify HMRC about the transaction. 2. The last 9 months of my ownership (ie from 1 January 2024) is always covered by PRR, so I can move out before the end of September without losing PRR benefit. Am I correct on both points? Thank you

Hi,
To calculate PPR, you need to work out the number of months that the property was your main residence, then you add a further 9 months to this number.  
Next you work out the number of months that you owned the property.  This then give you your PRR fraction of months main residence over months owned.  
Have a look at Helpsheet HS283 (HS283 Private Residence Relief (2024)).
If there is no capital gains tax to pay on the property disposal, then there is no requirement to report the gain to HMRC.
Thank you.

Hi ,
 

1. That is correct.  2. The final 9 months applies to the period of ownership. If you are still in the property at the time of sale, this 9 months is already included and you cannot add it on again . Thank you .

Thank you. I think that covers it all.