Reducing the risk of PPR relief

Written by yasiradnan94
9 September 2019

Many people assume that selling your main home automatically exempt from any capital gains tax. In some cases, this isn’t the case and getting this wrong can be very expensive.

The law requires more than simply owning the home and occupying it. It requires actual residence which can be defined as continuous occupation of a dwelling as a main home. There are certain periods of exemption for where an individual does not reside in the home which are beyond this blog – contact us to find out more.

Practical issues

Where you sell your main home it is important to notify your advisor of this even if you believe the sale will be exempt from capital gains tax. This can be very useful in the event you have got some of the facts wrong. If a tax bill was due and in not correctly disclosing and paying capital gains tax due then you may be charged by HMRC under a ‘failure to notify HMRC of a liability to tax’.

Such a failure is automatically deemed by HMRC to be a deliberate error and there is no obligation on HMRC to prove carelessness or deliberate error. Penalties for a deliberate error can be higher and opens up a 20 year window for HMRC to investigate.


By notifying your advisor and ensuring the sale of a main home is disclosed to HMRC, the window of enquiry open to HMRC is reduced from 20 years to one year! It further puts the onus on HMRC to prove carelessness or deliberate error.

AJN Accountants are specialists in helping contractors, freelancers and small businesses to save tax and time.

Please contact us for more information:

E: [email protected]
T: 020 3866 8951

Follow AJN Accountants on Twitter for regular updates.

VAT Fraud & The Risks to Your Business

In the world of VAT, a business can be unaware of a fraud in the supply chain and still be regarded as a fraudster.

Holiday Pay Changes

If you engage part time workers, or staff who work irregular hours, on permanent contracts you need to be aware of new rules.

MTD simplification

A dramatic simplification of the MTD processes to be introduced – no EOPS; cumulative submissions each quarter; and restrictions.

Related Posts

Making Tax Digital: quarterly update returns

Making Tax Digital: quarterly update returns

HMRC has confirmed the mandation dates for making tax digital for income tax self assessment (MTD SA) as announced in the Autumn Statement 2023. From April 2026, taxpayers subject to income tax on their trade, profession, property income or business and who have...

We use contact information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For information, check out our Privacy Policy.