Principal Private Residence (PPR) Relief - What is it?

[@johnporcella2375]

Does the content of this video need updating?

[@kimberleyshapcottpropertytax]

This has not changed recently so is up to date. As anything changes I will update the videos to ensure it is up to date and relevant.

[@johnporcella2375]

If someone living in say, Birmingham, where their PPR is, has to move to another employer in another city, say Manchester, would a property purchased in Manchester also qualify for PPR?

[@kimberleyshapcottpropertytax]

There is possibility however it would need to be looked at to see how the situation fits together as you cannot have two PPRs.

[@jamesreid4390]

The PPR exemption if you need to live elsewhere for work - does this apply if you rent out the property while you worked elsewhere? (and could not live in the property)

[@kimberleyshapcottpropertytax]

As this would be changing the purpose of the property i.e. from being your Main Residence to a Property Business, you would not receive PPR relief for the period it was let out.

[@johnporcella2375]

​@@kimberleyshapcottpropertytax Does Lettings Relief still exist?

[@kimberleyshapcottpropertytax]

This disappeared a number of years ago so is less likely to apply now.

[@AIHCU]

Hi Kimberley - can you use PPR if you purchase a new main residence before selling your original main residence and sell your existing main residence within 9 months of purchasing your new main residence?

[@kimberleyshapcottpropertytax]

Yes. There is a 9 month period allowed on properties that you own.

[@alroygardner5436]

Hi my partner had a property for 10 years and she has only rented it it for less than a year would she be eligible for partail relief??

[@kimberleyshapcottpropertytax]

She will likely only have a few months that are taxable which may be covered by the capital gains tax allowance. However. they will need to do the calculation to see if there is any taxable gains.

[@rashvindersaund8532]

What bills are required for ppr relief , while living at my main residence , as I will be selling my house in 6 months , Will council tax bill Electric bill Gas bill do ? Are them 3 sufficient Or do you need more , such as home insurance etc … Also do u need to be registered to vote at the address ? Thanks

[@kimberleyshapcottpropertytax]

You need to show evidence that you have lived there so all your bills plus things like bank statements and registering to vote will provide the evidence that you are living there as having moved house a few years ago, why would you bother if you are not living there. It takes ages to move everything and is a big hassle. If you have more than one residence you will need to appoint which one is your PPR as you cannot have 2 at the same time.

[@gm4551]

@@kimberleyshapcottpropertytax Purely by chance I was recently made aware that If anyone has more than one residence they will need to appoint which one is their PPR as you cannot have 2 at the same time. I only own a 50% share in 1 residence which I don't currently live in (though I did for several years in the past) and I do not receive any rent or income from it. I am a tenant in another property where I pay rent and live. Will the residence I co-own qualify for private residence relief if I sell my 50% share in it or will I need to appoint this residence. The HMRC guidance I have found on this all seems to be around if 1 or more properties are owned, where I only own 1 property and cannot possibly make any capital gain on the rented property where I am a tenant.

[@johnporcella2375]

When studying for my ACCA Tax Planning paper, I remember the lecturer telling us about somebody he knew or read about who bought a small flat to live in as his starter home. He subsequently got romantically involved with a woman and decided to live together as a couple. So he sold his flat at a profit not that long after moving in. They bought a place together elsewhere. However, as the first child came along, the place was too small and so they sold up, at a profit and went elsewhere. Then not long afterwards, they had to move again due to a job opportunity, again making a gain on selling. HMRC questioned all the house purchases and sales as he had made profits on every sale and so many in a relatively short time. His rationale was accepted, though I suspect that a note went into his file for the HMRC to look into any future house moves at profit!!

[@kimberleyshapcottpropertytax]

This is a great example of where it just happens that it is the truth and what happened. However, as shown HMRC are suspicious so its key to have evidence if moving more frequently as they may query it.

[@retrerwdg]

Question if I was gifted a percentage of a property and have always lived there ,never lived anywhere else .when I come to inherit the property would i have to pay capital gains tax on the property ?and if i was gifted that would mean on cgt tax uplift does that make any difference ?

[@kimberleyshapcottpropertytax]

If you inherit a property, it washes out all the other taxes. This means that there would be consideration of inheritance tax, however no capital gains tax at this point as you would inherit at the probate valuation. If it is gifted before hand then you wouldn't pay capital gains tax, however the person gifting the property would need to review their position to see if they needed to pay anything.

[@retrerwdg]

@@kimberleyshapcottpropertytax what about if I sold the property at a later date. I assume if its my primary residence it wouldn't matter if I was gifted the property as I've always lived there.

[@kimberleyshapcottpropertytax]

Then it is likely to not be a problem. However, if there is any uncertainty then I would suggest seeking full advice from an advisor. I cannot give a definitive answer on a comment without knowing the full details which would involve a full conversation offline.

[@younginvestor9657]

If you only own your primary residence is there any time limit with the ppr relief, so if you take 6 months to renovate and move again and again is that allowed? Thanks for another great video!

[@kimberleyshapcottpropertytax]

There is no time limits however you need to be able to evidence that it was your primary residence i.e. have lived there, bills there, neighbors seen you move in or living there.

[@kennyiklei]

great video. thanks. what if the property has been occupied by my children because they study or work in that region of the property and I am not in the country.

[@kimberleyshapcottpropertytax]

For PPR purposes it is the individual so if it is your property then you will need to have lived in it.

[@johnporcella2375]

Is there a link to the other PPR video that you mentioned?

[@kimberleyshapcottpropertytax]

I'll get it up for you soon. It's about making use of the PPR relief as you move house into a new home yet want to retain the original property options.

[@onyinbillyli5907]

great video! thanks for the clear explanation

[@kimberleyshapcottpropertytax]

You're welcome!

[@MrGarry128]

Excellent video. I have one question please. If I move abroad for reason of job and let my property out for the period I am working abroad, can I still treat it as my main home and get PPR relilef for the period I am working abroad? thanks

[@kimberleyshapcottpropertytax]

You are more likely than not going to be able to based on your brief description.

[@mary-ann541]

Hi Kimberly Could the PPR relief apply to both parents at the same time if they transfered the family home into their childs name?

[@kimberleyshapcottpropertytax]

The PPR relief would apply if they disposed of the property, however there may be other implications such as gifts with reservation for inheritance tax if they are going to be continuing to live in the house. I would recommend you speak to an accountant and tax advisor to ensure that what you are looking at achieving works from a tax point of view.

[@1234london1982]

Sold property in 2022 which has been owned and let for 5 years. Not lived there single day. Can PRR apply under final 18 months of ownership?

[@kimberleyshapcottpropertytax]

As you have never lived in the property since you owned it there is no PPR available.

[@johnporcella2375]

I suspect that you should have moved in! Mind you, where you came from would no longer qualify for PPR!

[@JagB2627]

Is there any relief when renting out main residence on temporary basis ?

[@kimberleyshapcottpropertytax]

Only the reliefs as explained in the video so it depends how long you are renting for what the impact on your PPR will be.

[@JagB2627]

@@kimberleyshapcottpropertytax thanks . I was keen to understand if there is a tax relief on rental income on main residence while I am renting an other place on temporary basis.

[@kimberleyshapcottpropertytax]

Unfortunately not that I am aware of except in the exceptions that are mentioned in the video.