Most people are aware of the this relief, which allows you to sell your home without having to pay capital gains tax on any profit that you make.
There are many rules associated with this relief, but it is a very valuable exemption as, for the majority of people, the purchase of their home is the biggest investment they ever make.
Where you own more than one home you can choose which one is your main residence, as long as you are living in the property selected as a home. By making the appropriate election (often known as flipping) it is possible to maximise the benefit of the relief. Professional advice should be sought prior to making an election.
Example:
John sells his house in 2014 for £450,000, having purchased the property in 2004 for £375,000. As it is his PPR, no tax is payable on the gain he has made on this property.
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