I have a query about capital gains tax principal private residence (PPR) relief. I bought my house in 2007, left in 2014 to work abroad, and have been a non-UK resident since Covid. I would like to sell the house now; would I be eligible for relief on any gains?
Arthur Weller replies:
It is not clear to me from what you have written whether you have been non-UK resident since 2014 or since Covid. On the assumption that it is since 2014, please refer to HMRC’s Capital Gains Manual at CG65070 (Example 1). Non-resident capital gains tax is based on the gain from 6 April 2015 until the date you sell the house. Let's say it was worth £200,000 on 6 April 2015, and you sell it for £380,000 in April 2024. So, it has gone up £180,000 in nine years, equivalent to £20,000 per year. Since it was at one time your main residence, you are eligible for the nine-month final period exemption. So, you can reduce the taxable gain by £15,000, which equates to nine months in that example.