PRINCIPAL PRIVATE RESIDENCE RELIEF (PPR RELIEF) FOR CGT
04/04/2009
CGT is charged on chargeable assets disposed of by chargeable persons. Certain assets may carry with them an exemption from charge and an example of that is a person’s principal private residence.
s.222 TCGA 1992 provides that a gain shall not be a chargeable gain if it is a gain to which the section applies and to the extent that it relates to the disposal of a dwelling-house [or part] which is, or has at any time during the individual’s period of ownership been, his only or main residence [s.222(2)(a)], or land which he has, for his own occupation and enjoyment with that residence, as its garden or grounds up to the permitted area [s.222(2)(b)].
A married couple or civil partners living together can only have one ‘only or main residence’ between them either in fact or by election and such election must be given by them both if it affects both of them – s.222(6)(a). Difficulties with the relief therefore arise with separated and divorced spouses or civil partners and people who are not married.
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