How the relief works
You would normally have to pay Capital Gains Tax (CGT) on any gain you make if you dispose (sell) of:
* a dwelling house (which can include a house, flat, houseboat or fixed caravan) which is your home
* part of a dwelling house which is your home
* part of the garden attached to your home
However, you’ll be entitled to full relief where all the following conditions are met:
* part of a dwelling house which is your home
* part of the garden attached to your home
However, you’ll be entitled to full relief where all the following conditions are met:
* The dwelling house has been your only or main residence throughout your period of ownership
you have not been absent, other than for an allowed period of absence or because you have been living in job-related accommodation, during your period of ownership (ie. living in SFA)
you have not been absent, other than for an allowed period of absence or because you have been living in job-related accommodation, during your period of ownership (ie. living in SFA)
* The garden or grounds including the buildings on them are not greater than the permitted area
* No part of your home has been used exclusively for business purposes during your period of ownership. Working from home using a room that is also used for non-business purposes will not prevent entitlement to full relief.
To find out more about Private Residence Relief from HMRC and if you can claim on your tax return click here.
Information provided by BRUNEI HIVE.