Private Residence Relief Calculator

Calculate capital gains tax relief on your main residence property sale

Calculate Your Private Residence Relief

Property Purchase Price (£)

Property Sale Price (£)

Purchase Date

Sale Date

Started Living There

Stopped Living There

Improvement Costs (£)

Selling Costs (£)

Tax Year

Your Tax Rate

Your Private Residence Relief Calculation

£0

Total Capital Gain

£0

PRR Relief Amount

£0

Taxable Gain

£0

Capital Gains Tax Due

What This Means

Private Residence Relief Guide

Private Residence Relief (PRR) is one of the most valuable tax reliefs available to UK property owners. This relief can significantly reduce or completely eliminate your capital gains tax liability when selling your main residence. The relief works by exempting the portion of your capital gain that relates to periods when the property was your only or main home.

        Key Point: If your property has been your only or main residence throughout your entire ownership period, you typically won’t pay any capital gains tax on the sale.
    

How Private Residence Relief Works

The calculation of PRR is based on the proportion of time the property served as your main residence during your ownership period. The formula considers both your actual occupation period and includes an automatic 9-month exemption at the end of ownership, regardless of whether you were living there.

PRR = Total Gain × (Occupation Period + Final 9 Months) ÷ Total Ownership Period

Eligibility Requirements

To qualify for Private Residence Relief, several conditions must be met:

The property must have been your only or main residence at some point during ownership
You must have actually lived in the property, not just owned it
The property should be suitable for occupation as a main residence
For non-UK residents, you must spend at least 90 nights in the property per tax year to claim relief for that year

Special Circumstances

Certain periods of absence from your main residence can still qualify for relief, known as ‘deemed occupation’. These include:

Any period up to 3 years for any reason (provided it’s preceded and followed by actual occupation)
Any period working overseas due to employment requirements
Up to 4 years if absent due to work elsewhere in the UK
The final 9 months of ownership always qualify, regardless of occupation

Multiple Properties

If you own multiple residential properties, only one can be designated as your main residence at any time. You can make an election to HMRC within two years of acquiring a second residence to specify which property should be treated as your main home. Without an election, HMRC will determine your main residence based on the facts, considering factors like where you spend most nights and the quality of your occupation.

Letting and Business Use

If you’ve rented out part or all of your main residence, or used it for business purposes, this may affect your PRR entitlement. Having a lodger in your home typically doesn’t impact the relief, but extensive letting periods can reduce the relief available. The calculation becomes more complex and may require professional advice to determine the exact relief due.

Frequently Asked Questions

What happens if I never lived in the property I’m selling?

If you never occupied the property as your main residence, you cannot claim Private Residence Relief. The full capital gain would be subject to capital gains tax, though you may be able to use your annual exempt amount and any available losses to reduce the liability.

Can I claim relief if I lived abroad during ownership?

Yes, but with restrictions. From April 2015, non-UK residents must spend at least 90 nights in the UK property during a tax year to claim relief for that year. Periods of working overseas due to employment can qualify as deemed occupation if certain conditions are met.

How does the final 9-month rule work?

The final 9 months of ownership automatically qualify for Private Residence Relief, regardless of whether you were living in the property during this period. This rule changed from 18 months to 9 months in April 2020 for most properties.

What if there was a delay in moving in after purchase?

If you couldn’t move in immediately due to renovation work or other valid reasons, you may still qualify for relief during this period, provided the delay doesn’t exceed 24 months and you move in as soon as practically possible.

Do I need to inform HMRC about my main residence?

If you own multiple properties, you should make an election to HMRC within two years of having more than one residence. This election specifies which property should be treated as your main residence for tax purposes.

Can couples claim relief on the same property?

Married couples and civil partners can only have one main residence between them at any time. However, they each have their own annual exempt amounts and can potentially structure the ownership to maximise tax efficiency.

References

HM Revenue & Customs. (2025). HS283 Private Residence Relief (2025). London: HMRC. Available at: https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet

HM Revenue & Customs. (2015). Tax when you sell your home: Private Residence Relief. London: HMRC. Available at: https://www.gov.uk/tax-sell-home

HM Revenue & Customs. (2015). Tax when you sell property: Work out your gain. London: HMRC. Available at: https://www.gov.uk/tax-sell-property/work-out-your-gain

Taxation of Chargeable Gains Act 1992, Section 222-226. London: The Stationery Office.

Finance Act 2020, Section 23. Changes to Private Residence Relief. London: The Stationery Office.