Private Residence Relief

I purchased my house in 1994 and have lived in 100% of the time since then and are now considering selling it. In 1994, I also owned a flat but did not live it and did not live in it after that date. This flat was on the market and eventually sold a few years later but there was no gain, only a loss. If I sell my current residential home, which has been my only home since 1994, am I entitled to 100% PRR on any gain and therefore no CGT to pay. That’s how I interpret the HMRC guidance.

Hi,

Based on the information provided, you have correctly interpreted the Private Residence Relief guidance, and there will be no CGT to pay on the sale of your residence.                                                
HS283 Private Residence Relief (2021)

Thank you.

Dear sir, I sold my house which is eligible to claim Private Resident Relief, should it be reported in self assessment?

Hi edmund,
If your Private Residence Relief covers the gain on the disposal of your home, then you do not need to report this in your tax return.
Thank you. 

Hello, I relocated in the UK in July 2023. I bought my current home in the UK in December 2022 while I was living in my home in Hong Kong, which was my main residence for the entire time I owned it. Therefore, I owned more than one home from December 2022 to July 2023. After arriving in the UK, I sold my house in Hong Kong and received the proceeds a few days after my arrival. I used the tool on the HMRC webpage to determine if I am eligible for Private Residence Relief. The result indicated that I am entitled to full Private Residence Relief and do not need to fill in the CGT section of the tax return. This means I don't have to declare anything about my sold property in my tax return. Could you please confirm this? Thank you.

Hi,

That is correct.

Thank you.

Dear Sir, In calculating % PRR, shall I count the period in days ? or in months? Thank you very much.

Based on the info provided, you likely qualify for 100% Private Residence Relief (PRR) on your home sale, meaning no Capital Gains Tax (CGT) to pay.

Hi Raymond,
Please use months, so that you can add a further 9 months to the period of main residence.
Thank you. 

 

Dear Sir, This is to follow up my question after your kind reply. If I use months to calculating % PRR, how can I handle the days which less than a month? for example 12 days or 22 days that I exceed the 9 months period ? Thank you very much.

Dear Sir, I'm sorry that my last quoestion isn't clear enough. I would like to ask in calculating %PRR, as suggested we shall us months insteads of days. However how can I manage the days that less than a months, for example my actual owning period is 120 months and 12 days and I left the apartment to UK for 10 months and 22 days . Shall I just ignor those days and count only those FULL months ? Thank you very much.

Hi,

You would treat each month as a full month irrespective of the number of days.

Thank you.