Private Residence Relief Calculator UK
This calculator gives an estimate only.
Your actual relief may depend on additional factors like letting periods, ownership structure, or absences. Book an appointment with our team for a precise calculation.
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How to Calculate Private Residence Relief
Selling your main home? Then Private Residence Relief (PRR) is probably going to save you a decent chunk of money in capital gains tax. But to actually figure out how much you’ll owe, you need to know how the calculation works. Don’t worry, it’s not as scary as it sounds.
The Main Formula (It’s Pretty Simple)
Here’s the thing: you take your profit from selling the house, then multiply it by how long you actually lived there compared to how long you owned it. That’s basically it.
Your Relief = Your Profit × (Years You Lived There ÷ Total Years You Owned It)
How to Actually Work It Out
Step 1: Figure Out Your Profit Easy part. Take what you sold the house for and subtract what you paid for it, plus any costs like solicitor fees or surveys. That’s your profit before we take off any relief.
Step 2: Count Your Qualifying Years This is where it gets a bit trickier. Any year you lived in the place counts, and the last 9 months you owned it counts automatically, even if you’d moved out. If you were working abroad during some of those years, that might count too. What doesn’t count? Any time you rented it out or just weren’t living there.
Step 3: Do the Math Work out what percentage of your ownership time you actually lived there. Multiply that percentage by your profit. Hey presto—that’s your relief.
Example
Let’s say you bought for £200,000 and sold for £350,000. That’s a £150,000 profit. You lived there for 16 out of 20 years.
- Years that count: 16 + 0.75 (that’s the 9 months) = 16.75 years
- Your percentage: 16.75 ÷ 20 = 83.75%
- Relief you get: £150,000 × 0.8375 = £125,625
- What you pay tax on: £150,000 − £125,625 = £24,375
- Minus the yearly allowance (£3,000): £21,375
Don’t Forget These Bits
If you’ve done any proper work on the house—like adding a conservatory or doing a full kitchen renovation—add those costs in. It brings down your profit, which is good news.
Live in the place the whole time you owned it? Then you don’t pay any tax at all. Nice. But if your situation’s complicated—like you rented it out for a bit or worked abroad—grab a calculator or talk to your accountant to make sure you get it right. That’s
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