By using “Principal Private Residence” (PPR) relief you can avoid paying Capital Gains Tax (CGT) on a property disposal.
For example, if you own a property as your only or main home throughout your period of ownership then you can claim PPR relief so you have no CGT liability.
If you subsequently let the property then the last 3 years of ownership will also qualify for PPR relief.
Tax Tip 1 – Sell the property within 3 years of it being your main residence and avoid paying any CGT.
Tax Tip 2 – If you sell the property after 3 years then you maybe subject to CGT. However, you maybe entitled to claim Private Letting Relief of up to £40,000.
Tax Tip 3 – Where the property is jointly owned and jointly let by husband and wife, each maybe entitled to the maximum £40,000 Private Letting Relief giving a total of £80,000.
Date:20 April 2007
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