Key takeaways
- Private residence relief usually removes Capital Gains Tax entirely when you sell a home that has been your only or main residence throughout your ownership.
- The final 9 months of ownership always qualify if the home was your main residence at some point (36 months for disabled people or those moving into care).
- Some absences count as occupation, including up to 3 years for any reason and periods working elsewhere, if you live there before and after.
- Letting relief now only applies where you share the home with a tenant, up to £40,000.
- If you have two homes, you can nominate which is your main residence within two years of the change.
Most people pay no Capital Gains Tax (CGT) when they sell their home, because of private residence relief (PRR), sometimes called principal private residence relief. The relief is generous, but it has conditions, and partial claims are common for people who have let their home, lived elsewhere or own more than one property.
When the whole gain is exempt
You get full relief, with nothing to report, if all of these apply:
- the property has been your only or main residence throughout the time you owned it, apart from the last 9 months
- you have not let it out, apart from having a single lodger who shares the living space
- you have not used part of it exclusively for business
- the garden and grounds, including the buildings on them, are 0.5 hectares or less (about 1.24 acres)
- you did not buy it mainly to make a gain
“Residence” means you genuinely lived there with some degree of permanence. A short stay to try to claim relief is not enough.
Periods that count even if you were not living there
The final 9 months
The last 9 months of ownership always qualify, as long as the home was your main residence at some point. This covers the time it takes to sell after you have moved. The period is 36 months if you are disabled or moving into long-term care and have no other property.
Absences
These periods of absence count as if you lived there, provided you lived in the home as your main residence both before and after the absence (with exceptions for work), and had no other main residence during it:
| Reason | Period that can count |
|---|---|
| Any reason | Up to 3 years in total |
| Working elsewhere in the UK | Up to 4 years in total |
| Employed abroad | Any length |
You do not need to return if your employer required you to work elsewhere and that prevented you from returning.
When part of the gain is taxable
If there are periods that do not qualify, the gain is split on a time basis.
Example
Raj bought a flat for £200,000 and lived in it for 4 years. He then moved in with his partner and let the flat for 6 years before selling it for £320,000 (allowable selling costs £5,000).
| Step | Amount |
|---|---|
| Gain (£320,000 − £200,000 − £5,000) | £115,000 |
| Ownership period | 10 years (120 months) |
| Qualifying months: 48 lived in + final 9 | 57 months |
| Private residence relief (57/120 × £115,000) | £54,625 |
| Chargeable gain before annual exempt amount | £60,375 |
Raj’s absence was not covered by the absence rules because he never moved back. Lettings relief does not apply, because he did not live there with his tenants. The chargeable gain is taxed at 18% or 24% after his £3,000 annual exempt amount, and he must report and pay within 60 days of completion.
Letting relief
Since 6 April 2020, letting relief is only available if you share occupation with your tenant, for example letting a room while you live there. It is the lowest of £40,000, the PRR you are due and the gain on the let part. Most landlords who moved out and let their former home no longer get it.
Two homes
If you have more than one residence, for example a city flat and a country house, you can choose which counts as your main residence by nominating it to HMRC in writing within two years of the date your combination of residences changed. If you do not nominate, HMRC decides as a question of fact. Married couples and civil partners can only have one main residence between them.
Business use and large gardens
- If part of the home is used exclusively for business, such as a dedicated surgery or workshop, that part does not qualify. A room used partly for work and partly as a home does not lose the relief.
- If the grounds exceed 0.5 hectares, relief is only available on more than that if the extra land is needed for reasonable enjoyment of the house, given its size and character.
- Selling off part of the garden separately after selling the house means the land no longer qualifies.
Reporting a gain on a home
If any gain is chargeable, you must report and pay within 60 days of completion using HMRC’s UK property account, and also include it on your Self Assessment return if you file one. If the whole gain is covered by PRR, you do not need to report it. See reporting and paying CGT and CGT on a second home.
Frequently asked questions
Do I pay Capital Gains Tax when I sell my house?
Not usually, if it has been your only or main home throughout your ownership. Private residence relief covers the whole gain.
How long do I have to live in a property to avoid CGT?
There is no minimum period, but you must genuinely live there as your home. The final 9 months then qualify too, and short or token occupation will not be accepted.
Do I pay CGT if I rent out my old home?
Possibly, on part of the gain. The period you lived there and the final 9 months are exempt, but the let period is usually chargeable, and letting relief only applies if you lived with the tenant.
Can a married couple have two main residences?
No. A married couple or civil partners living together can only have one main residence between them for private residence relief.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance in October 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.