Illustration - PRR
You'll learn how to calculate private residence relief (PRR) on the sale of a home by carefully tracking periods of occupation and absence.
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In this lesson
- 0:00 Private residence relief illustration
- 0:15 Emma's occupation timeline breakdown
- 1:17 Calculating the initial gain
- 2:01 Applying PRR relief rules
- 3:01 Final chargeable gain calculation
About this lesson
This illustration walks through Emma's property sale over 22 years, showing how different types of absence—work-related, career breaks, and the final period before sale—affect your relief entitlement. Understanding PRR is essential for TX and ATX papers, as it determines how much of your gain is actually taxable when you sell a main residence. By working through this step-by-step example, you'll see how to apply the rules correctly and avoid costly mistakes on complex ownership timelines.
Duration: 3m
Transcript
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