England, Wales, Scotland and Northern Ireland · PPR Election (TCGA 1992 s.222(5)): Where a Taxpayer Has Two or More Residences, They May Nominate One as Their Main Residence for PRR by Written Notice to HMRC — Within 2 Years of First Having Two Qualifying Residences · Election Can Be Varied at Any Time (Including the Day Before Sale) · Final Period Exemption: Last 9 Months of Ownership Automatically Exempt If Property Was EVER the Main Residence · Letting Relief: Post-April 2020 — Shared Occupation With Tenant Only (Max £40,000 Per Person) · HMRC Scrutiny: Genuine Occupation Required

Principal Private Residence Election — Main Residence Nomination, 2-Year Window, Varying the Election, Final Period Exemption and BTL CGT Planning Strategy

Principal private residence (PPR) election guide 2026: how to make and vary the main residence nomination under TCGA 1992 s.222(5); the 2-year window from first having two qualifying residences; how to vary the election at any time; the 9-month final period exemption for properties that were ever the main residence; letting relief restriction post-April 2020 (shared occupation only; max £40,000 per owner); BTL planning strategy — genuine occupation required for a valid nomination; HMRC enquiry risk on sham nominations.

11 min readUpdated 7 June 2026Last reviewed: 17 May 2026cgtprivate-residence-reliefppr-electionmain-residence-nomination

PPR Election Mechanics — The 2-Year Window and Qualifying Residences

Under TCGA 1992 s.222(5), where a person has more than one dwelling house used as a residence, they may elect which is treated as their main residence for PRR by written notice to HMRC. The election must be made within 2 years of first having two qualifying residences — from the date both properties are actually used as residences by the owner. A permanently let BTL property is not a 'residence' for election purposes until the owner genuinely lives in it.

No prescribed HMRC form — a letter to HMRC Capital Gains Tax or Personal Tax Account online submission
The notice must identify the properties, specify the nominated main residence, and give the effective date
If no election is made within the 2-year window, HMRC determines which was the main residence on the facts (the 'quality of occupation' test)
The election can be varied at any time by a further written notice — including the day before selling one of the properties
A new 2-year window opens each time the taxpayer acquires a new qualifying residence, for the new combination of properties

Final Period Exemption and BTL Planning Strategy

The Final Period Exemption (TCGA 1992 s.223(1)) provides that the last 9 months of ownership of a property that has at any time been the owner's main residence are exempt from CGT. This is the primary planning opportunity for landlords who previously lived in a property before renting it out — the last 9 months of ownership are automatically exempt regardless of what the property was used for during that period.

9 months (as of 6 April 2020) — reduced from 18 months (April 2014–April 2020) and 36 months (before April 2014)
The property must have been the owner's main residence at SOME POINT during ownership — whether by election or on the facts
Disabled persons and care home residents: the final exempt period is extended to 36 months
BTL planning: if the landlord genuinely occupied the BTL as a residence and nominated it (by election or on the facts), the last 9 months of ownership are automatically exempt from CGT on disposal
HMRC enquiry risk: sham occupation (where the landlord did not genuinely live in the property) will be challenged — HMRC requires utility bills; bank statements; driving licence; GP registration at the nominated address as the real-life address

Letting Relief — Post-April 2020 Restriction

Letting relief (TCGA 1992 s.223(4)) was significantly restricted from 6 April 2020. Post-2020, it is only available where the landlord shared occupation of the property with the tenant at the same time — a lodger arrangement where the landlord lives in part of the property while letting out another part.

Post-April 2020: letting relief only available where the landlord shares occupation with the tenant simultaneously
Maximum letting relief: the lesser of (a) the PRR attributable to the period of shared letting; (b) £40,000 per owner (£80,000 for a jointly owned property with two owners)
Pre-April 2020 (ABOLISHED for disposals on or after 6 April 2020): letting relief was available even after the owner had fully vacated — this regime no longer applies
Where applicable, letting relief reduces the chargeable gain — the PRR fraction and final period exemption are calculated first, and letting relief reduces the remaining chargeable gain further

Frequently asked questions

What is the principal private residence election and who can use it?+

The PPR election (TCGA 1992 s.222(5)) allows a taxpayer who owns and occupies two or more properties as residences to nominate one as their main residence for Private Residence Relief (PRR) by written notice to HMRC — within 2 years of first having two qualifying residences. The election can be varied at any time. Only properties the owner genuinely occupies as a residence qualify — a permanently let BTL the owner has never lived in cannot be nominated.

Can a landlord vary the PPR election before selling a BTL property?+

Yes — the PPR election can be varied at any time by a further written notice to HMRC. However, to nominate a BTL property as the main residence, the landlord must have genuinely occupied it as a residence at some point. If they have, varying the election before sale can capture the 9-month Final Period Exemption. HMRC scrutinises last-minute variations and requires evidence of genuine occupation (utilities; bank statements; driving licence; GP registration at the nominated address).

What is the final period exemption and how long is it?+

Under TCGA 1992 s.223(1), the last 9 months of ownership of a property that has at any time been the owner's main residence are automatically exempt from CGT — regardless of how the property was used in those final 9 months. History: 36 months until April 2014; 18 months from April 2014 to April 2020; reduced to 9 months from 6 April 2020. Disabled persons or those moving into care have a 36-month final period.

Is letting relief still available after April 2020?+

Yes, but only in restricted circumstances. Post-6 April 2020, letting relief (TCGA 1992 s.223(4)) applies only where the landlord shared occupation of the property with the tenant simultaneously — a lodger arrangement. Maximum: the lesser of the PRR attributable to the shared letting or £40,000 per owner. The pre-April 2020 regime (available even after the owner vacated) was abolished for disposals on or after 6 April 2020.

Templates recommended in this guide

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