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

Kimberley Shapcott Property Tax and Accountancy

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You have your own house and you decide to sell. Why don't you pay any capital gains tax? Well here is your answer. This video explains what it is all about so you know what it is.
This video is going to cover the Principal Private Residence Relief and when you can apply this relief to your situation.
In this video you will discover:
What is Principal Private Residence (PPR) Relief?
Who it applies to?
When it applies?
What the rules are around the size of your property and garden are?
More detail can be found at HM Revenue and Customs here:
www.gov.uk/government/publica...
Thanks for tuning in to the video. And keep your eye out for our next video on this topic which will discover ways to make this work for you as a Property Investor.
If you know anyone who may find the property information helpful and useful then please share it with them too.
Subscribe to the channel and press the notifications button to ensure you keep up to date with the latest property tax and accounting videos.
If you need help from an accountant then check out
www.shapcotts-accountants.co.uk
Check out my links at linktr.ee/KimberleyShapcott
DISCLAIMER: Please be advised that the content of my media is my personal opinion and is intended FOR GENERAL INFORMATION PURPOSES ONLY, not specific tax advice. Nothing herein shall be construed to be financial, legal or tax advice. The content of this video is solely the opinions of the speaker. Making decisions on your tax position and investment decision is your own and appropriate specific targeted advice from a qualified accountant or tax advisor should be sort. The speaker will not be held responsible for any losses or gains based on decisions made following watching this video. Always do your own research and seek advice from an appropriately qualified professional.
#property #propertytax #propertyinvestment #accountants #taxadvisor #shapcottsaccountants #believepropertyltd #PPR #PrincipalPrivateResidenceRelief #NoCGT #Landlord
Thanks to Applecore Productions for recording and editing support and guidance.
Music from:
Happy Upbeat Corporate | WORK by Alex-Productions | / @alexproductionsnocopy...
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Опубликовано:

6 авг 2021

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Комментарии : 42

@onyinbillyli5907 2 года назад

great video! thanks for the clear explanation

@kimberleyshapcottpropertytax 2 года назад

You're welcome!

@johnporcella2375 Год назад

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 Год назад

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.

@younginvestor9657 2 года назад

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 2 года назад

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.

@AIHCU 2 месяца назад

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 Месяц назад

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

@kennyiklei 2 года назад

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 2 года назад

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

@johnporcella2375 Год назад

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 Год назад

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

@MrGarry128 Год назад

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 Год назад

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

@mary-ann541 Год назад

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 Год назад

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.

@jamesreid4390 2 года назад

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 2 года назад

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 Год назад

@@kimberleyshapcottpropertytax Does Lettings Relief still exist?

@kimberleyshapcottpropertytax 9 месяцев назад

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

@johnporcella2375 Год назад

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

@kimberleyshapcottpropertytax Год назад

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.

@retrerwdg Год назад

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 Год назад

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 Год назад

@@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 9 месяцев назад

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.

@alroygardner5436 7 месяцев назад

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 6 месяцев назад

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.

@hedgefundshyster..3241 2 года назад

Is there a three year rule ...were if you moved out of your only property and rent it out ...to travel or whatever reason ...and if you move back in within three years ...it counts as if you always lived there....so entitled to full PRR....I only own one property ....

@kimberleyshapcottpropertytax 2 года назад

If you rent it out then that period is likely to not be allowed for tax purposes. If it is empty in that period and you are travelling then you are more likely to be able to use the PPR relief. The following are some of the rules based on the HMRC guidance around absence from a property: If you have one home or you nominated your home You get relief if you were away from it for: any reason for periods adding up to 3 years up to 4 years if you had to live away from home in the UK for work any period if you were working outside the UK You must have lived in the home before and afterwards, unless your work prevented you. If you only own one home you get relief for the last 36 months before you sold your home if any of the following apply: you’re disabled you’re in long-term residential care you sold the property before 6 April 2014 You get relief for the last 18 months if none of these apply, but you sold your home before 6 April 2020. I would suggest speaking to a Tax Advisor though to discuss the specific circumstances as some of the rules can be quite quirky so just would recommend this to ensure you don't fall into a trap.

@1234london1982 Год назад

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 Год назад

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

@johnporcella2375 Год назад

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

@rashvindersaund8532 Год назад

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 Год назад

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 Месяц назад

@@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 Год назад

Does the content of this video need updating?

@kimberleyshapcottpropertytax Год назад

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.

@JagB2627 Год назад

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

@kimberleyshapcottpropertytax Год назад

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 Год назад

@@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 9 месяцев назад

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