Which statement about Private Residence Relief and CGT is true?

Which statement about Private Residence Relief and CGT is true?

• A. Private residence relief never applies
• B. Private residence relief provides full exemption for principal home in all cases
• C. Private residence relief can provide exemption from CGT on the sale of a main home, subject to conditions
• D. Private residence relief applies only to commercial property

Answer: (C)

Private Residence Relief reduces the CGT you’d pay on selling a dwelling that has been your main home. It isn’t automatic and only applies for the periods the property was your main residence (and under related rules about absences, lettings, and the final period). So the statement that it can give an exemption from CGT on the sale of a main home, subject to conditions, is correct. It does not apply to commercial property, and it doesn’t guarantee full exemption in every case—the amount of relief depends on how long you actually lived there and how the ownership periods break down.

Private Residence Relief reduces the CGT you’d pay on selling a dwelling that has been your main home. It isn’t automatic and only applies for the periods the property was your main residence (and under related rules about absences, lettings, and the final period). So the statement that it can give an exemption from CGT on the sale of a main home, subject to conditions, is correct. It does not apply to commercial property, and it doesn’t guarantee full exemption in every case—the amount of relief depends on how long you actually lived there and how the ownership periods break down.