Sarah Bradford explains how certain periods of absence may be treated as periods of residence for the purposes of capital gains tax principal private residence relief.
Principal private residence (PPR) relief is a well-known capital gains tax (CGT) relief that prevents a tax charge from arising when a gain is made on the disposal which has been the owner’s only or main residence throughout their period of ownership.
If the property has not been occupied as the individual’s only or main residence throughout, PPR relief applies to the period for which it was occupied as such, plus the final nine months of ownership (this is increased to 36 months when the owner goes into care).
Less well-known is that certain periods of absence are treated as periods of residence for the purposes of the relief. This article looks at what counts as a qualifying absence.
