f I sell my house will I have to pay
Capital Gains Tax?
If you sell your home (your sole or
main residence) you may be entitled
to Principal Private Residence (PPR)
relief from Capital Gains Tax (CGT). If
the residence (as defined above) has
been occupied as your sole or main
residence throughout your period of
ownership, and PPR relief is not
restricted for any other reason, you
will be exempt from CGT on the sale.
Where the house has a garden of up
to one acre (0.405 hectare) this land
can also be considered as part of your
home for the calculation of PPR relief,
the relief will not apply to land in
excess of this area. Although in most
cases where an individual sells their
home full PPR relief will apply, relief
may be restricted where the house
(or part of the house) has been let or
used for business purposes, or where
the property has "development
value". Relief may also be restricted
where the individual has not used the
house as their home for the full
period of ownership. However, the
last twelve months of ownership may
be considered to be a period of
deemed occupation for PPR relief
purposes, this might be relevant for
example where a person has moved
into a new home but is still selling
their previous home.
Please note that even where PPR
relief means that no CGT is payable
you will still be required to provide tax return in relation to the sale.