Private Residence Relief Calculator
Calculate PPR fraction, lettings relief and net gain remaining for your Annual Exempt Amount — 2026/27 rules.
Last updated: March 2026
PPR & Lettings Relief Calculator 2026/27
Enter your gain and occupancy details to calculate Private Residence Relief, lettings relief and your net taxable gain
PPR Formula Explained
(Months as main residence + 9 final months) ÷ Total ownership monthsThe result is multiplied by the total chargeable gain to give the PPR relief amount. The 9-month final period applies automatically if you have at some point occupied the property as your main home, regardless of whether you are still living there at the time of sale.
Period of Absence Rules
| Type of Absence | Maximum Period | Conditions |
|---|---|---|
| Any reason (general) | Up to 3 years (lifetime) | Must have occupied as main home before and after |
| UK employment away from home | Up to 4 years | Job requires you to work away; must return after |
| Whole-time employment abroad | Any length | Must occupy as main home before and after |
| Disabled / care home | Up to 36 months | Final period extended to 36 months |
Lettings Relief — Post-April 2020
| Condition | Lettings Relief Available? |
|---|---|
| Owner lives with lodger (shared occupancy) | Yes — up to £40,000 |
| Owner moves out, then lets whole property | No — relief abolished for absent landlords |
| Owner lets part only while remaining in residence | Yes — partial lettings relief |
Expert Guide: Private Residence Relief 2026
1. What Qualifies as a "Main Residence"?
A property qualifies as your main residence for PPR if you genuinely live there as your home — it must be a dwelling house (or part of one) and must actually be occupied as a residence, not merely owned. HMRC looks at factors including: where you sleep most nights, where you are registered for council tax, where you keep your belongings and where family members live. Mere transient or temporary visits do not establish a main residence. The quality and permanence of occupation matters more than raw number of days spent.
A caravan, houseboat or a property under construction may also qualify if it meets the dwelling-house test. Land up to 0.5 hectares (including the house footprint) is covered automatically. Larger grounds may qualify if needed for reasonable enjoyment of the property.
2. HMRC ESC D21 — Job-Related Accommodation
Extra-Statutory Concession D21 (now incorporated into legislation) allows you to elect PPR on a property you own but cannot live in because you are required to live in job-related accommodation as a condition of your employment. Classic examples include caretakers, armed forces personnel, vicars, and headteachers in tied housing. While you occupy the job-related accommodation, the property you own continues to accumulate PPR even if unoccupied — provided you intend to occupy it eventually as your main home. You must own or have a beneficial interest in the property.
3. Two Homes: PPR Nominations Strategy
When you have two or more residences available simultaneously, HMRC will designate the main residence based on facts unless you make a formal election. A nomination must be submitted in writing (by letter or HMRC online account) within 2 years of first acquiring the second residence. The nomination can be changed at any time thereafter — a new nomination applies from the date of submission. Strategic nomination timing: briefly nominating a high-gain property before selling can allocate the final 9-month period to that property, potentially saving significant CGT. Always take professional advice before attempting this.
4. The 9-Month Final Period Rule
The final 9 months of ownership always qualify for PPR (reduced from 18 months in April 2020), provided you have at some point lived in the property as your main home. This grace period exists to allow time to sell without the seller suffering CGT purely because they have had to vacate before completion. The 9-month period applies even if you have already moved to a new main home. For disabled people and those moving into a care home, the final period is extended to 36 months under TCGA 1992 s.225E.
5. Business Use — Partial Restriction of PPR
If you use part of your home exclusively for business purposes, that portion does not benefit from PPR. HMRC apportions the gain based on floor area or rooms used exclusively for business. However, if rooms are used for mixed purposes (working from home occasionally in a room also used as a dining room), no CGT restriction applies. Claiming the HMRC flat-rate home office allowance for income tax purposes (£6/week) does not trigger a CGT restriction. Only exclusive, dedicated business use that creates a separate business asset creates a problem.
6. PPR on Inherited and Gifted Properties
When you inherit a property, the base cost for CGT is the probate value at the date of death. If you move into the property and use it as your main home, PPR begins from the date of death (when you acquired it). You cannot claim PPR for any period before you inherited it — even if the deceased lived there. When a property is gifted (other than between spouses), CGT is triggered at market value on the date of gift, so PPR must be assessed based on the donor's occupation history. No overlap of relief is possible.
7. Working Overseas and PPR
If you are required to work abroad full-time (employed or self-employed) and cannot occupy your UK home during that period, those years of absence can count towards PPR under the "any duration of absence where employed abroad" rule. The key condition is that you must have lived in the property as your main home before going abroad, and you must return to live there again after (unless the job ends and immediate sale takes place). If your employer provides accommodation abroad, this does not prevent the rule from applying. The absence rule does not require formal HMRC election.
8. Maximising PPR When Selling — Practical Checklist
Before selling: Review your ownership history and document all periods of residence. Locate contracts of employment showing job-related absences. Retain all improvement invoices (separate from repair receipts). If you have two homes, consider whether a fresh PPR nomination would help. At sale: Report and pay within 60 days via HMRC online. In Self Assessment: include the disposal on your tax return (SA108). Keep records for 4 years after the tax year of disposal. Married couples: Each owner has their own PPR, which may differ if one spouse moved in later. Both AEAs (£3,000 each) can be used on joint disposals.
Worked Examples: PPR and Lettings Relief
Example 1: Full PPR — No Periods of Absence
Property owned and occupied as main home for 15 years (180 months). Total gain: £200,000.
- PPR fraction: 180 ÷ 180 = 100%
- PPR relief: £200,000
- Remaining gain: £0
- CGT due: £0
Example 2: Partial PPR — Former Home, Now Let (No Shared Occupancy)
Property owned for 10 years (120 months). Main residence for 5 years (60 months). Then let for 5 years without owner present. Total gain: £90,000.
- PPR months: 60 (residence) + 9 (final period) = 69 months
- PPR fraction: 69 ÷ 120 = 57.5%
- PPR relief: 57.5% × £90,000 = £51,750
- Remaining gain: £38,250
- Lettings relief: Nil (no shared occupancy)
- Less AEA: £3,000
- Taxable gain: £35,250
Example 3: Lettings Relief With Lodger (Shared Occupancy)
Property owned for 8 years (96 months). Main residence throughout but lodger lived in spare room for 4 years. Total gain: £80,000.
- PPR fraction: 96 ÷ 96 = 100%
- PPR relief: £80,000 — full relief
- Remaining gain: £0
- Lettings relief: Not needed (gain fully covered by PPR)
- CGT due: £0
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Last updated: March 2026 | Verified with latest HMRC PPR rules