by Asim Abbas
11 November 2026 
Selling your home: Private Residence Relief explained
Selling your home: Private Residence Relief explained
When you sell your only or main home, any gain is usually free of Capital Gains Tax thanks to Private Residence Relief.
- Your main home is usually CGT-free
- The final 9 months of ownership always qualify
- Lettings relief now only applies to shared occupation
- Report taxable gains within 60 days
But if you’ve let the property, lived elsewhere for a time, used part for business, or have very large grounds, part of the gain may be taxable.
This guide explains how the relief works and when you need to report a sale.
When you get full relief
- It has been your only or main home throughout ownership
- You haven’t let it out, apart from a lodger
- No part has been used exclusively for business
- Grounds are 5,000 square metres or less, including the house
- You didn’t buy it mainly to make a gain
When relief is reduced
Relief is given for periods you lived there plus the final nine months. Some absences are treated as occupation, such as up to three years for any reason, up to four years for work in the UK, and any period working abroad, if you live there before and after.
Capital gains tax calculator
Work out a partial PRR claim.
Ruby bought a flat in 2014 for £180,000, lived in it for six years, then let it for six years before selling in 2026 for £330,000. Her gain is £150,000. Relief covers six years plus the final nine months, 6.75 of 12 years, so £84,375 is exempt. The taxable gain is £65,625, less the £3,000 exemption, taxed at 18% and 24%.
Lettings relief
Since April 2020, lettings relief only applies if you shared occupation with your tenant, for example a lodger. It’s worth up to £40,000 per person.
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If you have two residences, you can nominate which is your main home for PRR, within two years of acquiring the second. Married couples can only have one main residence between them.
Business use
A room used exclusively for business may lose relief for that part. Occasional or mixed use usually doesn’t.
Reporting
If the sale is fully covered by PRR, there’s nothing to report. If there’s a taxable gain on a UK home, you must report and pay within 60 days of completion using HMRC’s UK property account.
Divorce and separation
Spouses separating have up to three years to transfer assets on a no gain, no loss basis. A spouse who leaves the home can keep PRR when transferring their share to the other in some cases.
See HMRC’s guide to tax when you sell your home, our CGT on property guide and our CGT service.
What should I do next?
And any letting.
Plus final 9 months.
If there’s a gain.
Frequently Asked Questions
Do I pay tax when I sell my home?
Usually not, if it has been your only or main home throughout.
What is the final period exemption?
The last nine months of ownership always qualify for relief.
Can I still get lettings relief?
Only if you shared occupation with the tenant, up to £40,000.
Do I need to report the sale of my home?
Only if there is a taxable gain, within 60 days.
Can a couple have two main residences?
No. Married couples and civil partners can only have one between them.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Stephen Reynold
I’m Stephen Reynold, an accountant at Wingate Accountants. I work with sole traders and small companies, turning tax rules into clear, practical next steps.
