Your home – or ‘main residence’ as the taxman lies to call it – is usually easy to determine. But, for some, this can be more difficult and time limits do exist if you want to elect for a particular property to be your home if you have more than one. This distinction can be very important.
When you sell your home, the main tax that you usually must consider is the painful stamp duty on the one you are inevitably buying.
However, it is normal for a capital gain to arise from selling your home and this is usually extinguished because of a special relief called principal private residence relief or PPR, as it is known.
This relief usually provides 100% relief from any capital gains tax upon sale of your home, but there can be circumstances when this is not the case and criteria do need to be met.
The most common scenario of capital gains tax being payable on a property that has always been your home is the disposal or part disposal of a large property, as only half a hectare of garden/grounds is covered by the relief.LOGIN OR REGISTER TO READ MORE……………