Private Residence Relief if Working Abroad and renting your Main Home whilst away.

I own my own home in the UK and may be working abroad soon possibly for a number of years. Whilst I'm working abroad can I rent out my UK home without making myself liable to pay capital gains tax if I decide after my return to the UK to sell my house in the future?

Hi,

You would only qualify if the job abroad provided job related accomadation. Further guidance is at:

HS283 Private Residence Relief (2023)

Thank you.

Hi HMRC Admin 32, thank you for your quick response. What qualifies as 'job-related accommodation'? As an example, if I got a job in UAE and found an apartment there to rent for the duration of my employment period would that qualify, or would the apartment need to be provided by the employer? I look forward to hearing from you, kind regards 

Name removed admin  .

Hi Chris Pain,

It needs to be accomadation provided by the employer.

Thank you.

I believe the reply above is wrong but am interested to hear feedback. I believe yYou would qualify for relief based on "S223(3)(b) TCGA92 - Office/employment outside UK" For this the accomodation does not need to be provided by the employer (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65040) Furthermore - Use of residence during period of absence (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65050) It does not matter how the residence is used during a qualifying period of absence. For example, it may be let without any loss of relief.

Hi, I have a similar concern. While working overseas we rent the house out. However we come back and forth and live in the house for actual periods of occupation. On the months/years it is rented out while we are abroad working can we still claim for PPR on the actual periods of occupation or because we are renting it out can we not qualify at all. Thank you.

Hi,

If you are abroad as a result of your employment, you can rent out your property and still count it towards private residence relief. 

You can find further guidance here:

Tax when you sell your home
HS283 Private Residence Relief (2023)
CG64200C - Capital Gains Manual: Reliefs: Private residence relief: contents

Thank you.

Thank you. On the occasion where the accommodation is not provided by employer but still overseas because of employment. Do i qualify at all for PPR or only partially for the actual periods of occupation.

Hi,

You can see guidance here:

HS283 Private Residence Relief (2024)

Thank you.