2026/27 PRR & CGT Rules
PRR relieves CGT based on the fraction of total ownership spent as your main home. Standard final 9 months are automatically exempt. Residential CGT is 18% (basic) or 24% (higher/additional) after the £3,000 Annual Exempt Amount.
PRR Relief & CGT Calculator
Calculates qualifying residence months, Lettings Relief, and remaining CGT
Private Residence Relief Breakdown
PRR Relieved Amount
£89,000
74.2% ExemptTaxable Gain
£28,000
After £3k AEAEstimated CGT Bill
£6,720
At 24% Rate| Total Ownership Period | 120 Months |
| Qualifying Residence Months (Occupied + Absences + Final 9m) | 89 Months |
| 2026/27 Annual Exempt Amount (AEA) | -£3,000 |
| ESTIMATED CAPITAL GAINS TAX DUE | £6,720 |
How HMRC Calculates PRR (TCGA 1992 s222)
Private Residence Relief is calculated by dividing your qualifying residence months by your total ownership months.
| Period Category | HMRC Qualifying Rules |
|---|---|
| Actual Occupation | Months actually occupied as your main home. |
| Final Period Relief | Automatic final 9 months (36 months for disabled / care home residents). |
| Deemed Absences (s223) | Up to 3 years any reason; up to 4 years UK work; unlimited overseas work. |
| Lettings Relief | Shared tenancy only (lowest of £40k, PRR amount, or letting gain). |
Frequently Asked Questions (6 Detailed FAQs)
Private Residence Relief can reduce or eliminate Capital Gains Tax on a gain from disposing of your only or main residence. The amount of relief depends on the periods the property qualified as your main residence, qualifying periods of absence, and the final-period exemption.
For most disposals, the final 9 months of ownership qualify for Private Residence Relief if the property was your only or main residence at some point during your ownership. Certain disabled people and people in long-term residential care can have a 36-month final period.
Yes. Certain absences can qualify under TCGA 1992 s223, including absences up to 3 years for any reason, qualifying UK employment absences up to 4 years, and overseas employment absences of unlimited duration, provided residence conditions before and after are met.
Lettings Relief applies when you let part of a property that was your home while living there with the tenant. Relief is the lowest of £40,000, the PRR amount, or the gain attributable to letting.
Married couples and civil partners living together can generally have only one main residence between them for PRR purposes.
For 2026/27, residential property CGT rates are 18% for basic-rate taxpayers and 24% for higher/additional-rate taxpayers. The Annual Exempt Amount is £3,000 for individuals.
Official HMRC Sources
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2026/27 CGT Benchmarks
Basic Rate Residential CGT18%
Higher Rate Residential CGT24%
Annual Exempt Amount£3,000
Final Period Exemption9 Months
Lettings Relief Cap£40,000 Max