{"id":952,"date":"2021-03-26T00:00:00","date_gmt":"2021-03-26T00:00:00","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/knowledge\/articles\/what-is-private-residence-relief\/"},"modified":"2025-05-22T13:19:02","modified_gmt":"2025-05-22T13:19:02","slug":"what-is-private-residence-relief","status":"publish","type":"knowledge","link":"https:\/\/www.simplybusiness.co.uk\/knowledge\/landlord-tax\/what-is-private-residence-relief\/","title":{"rendered":"What is Private Residence Relief?"},"content":{"rendered":"

You may be able to reduce the amount of capital gains tax you need to pay when selling a buy-to-let property.<\/p>\n\n

Here, our guide to Private Residence Relief for landlords explains how the relief works and what you could do to benefit.<\/p>\n\n

What is Private Residence Relief \u2013 and who\u2019s eligible?<\/h2>\n\n

Private Residence Relief (PRR) is a capital gains tax relief that\u2019s automatically applied when you sell a property.<\/p>\n\n

To benefit from the full relief, it must be your main home (you may also qualify when you dispose of a residence that you\u2019ve provided for a dependent relative).<\/p>\n\n

Whereas if you\u2019re selling a second home or buy-to-let property, you\u2019ll have to pay capital gains tax<\/a> on property profits \u2013 but you might be able to get some relief depending on whether you\u2019ve ever lived in the property.<\/p>\n\n

You don\u2019t get any tax relief if you bought your property to make a gain \u2013 in other words, if you bought it as an investment or to use it for business.<\/p>\n\n

Tax when you sell your second home<\/h2>\n\n

As mentioned above, when you sell a second home that\u2019s increased in value, you\u2019ve made a \u2018gain\u2019. HMRC sees the gain as taxable \u2013 this is capital gains tax.<\/p>\n\n

There are factors that might mean you can get some relief though:<\/p>\n\n