Q&A: principal private residence relief (PRR) tax liability

When a taxpayer owns more than one property it can make sense to apply for principal private residence relief (PRR) with HMRC if the ownership falls within the two-year time limit. Angela Robson, tax consultant at Croner Taxwise considers the timing issues

Question: I have a client who currently has an interest in two residential properties. One property he clearly occupies as a main residence and the other was bought to use as a holiday retreat for family weekends. Now that my client has two properties should he consider making a private residence nomination, if he is in time to do so. What are the implications if he is not in time?

Answer: An individual may only obtain capital gains tax (CGT) relief on one main residence at any one given time. If an individual owns two (or more) main residences complications can arise.

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