Glossary · Property & Estate
Private Residence Relief
Private Residence Relief is a UK relief that can exempt the entire gain on your main home from UK Capital Gains Tax, with no monetary cap. Its US counterpart, the Section 121 exclusion, is capped — creating a common cross-border mismatch.
PRR
In more detail
PRR removes UK Capital Gains Tax on the gain from a property that has been your only or main residence throughout ownership, often exempting the whole gain. Because there is no cap, a UK main-home sale can be entirely UK-tax-free. For an American, the US Section 121 exclusion is capped, so the same sale can produce US tax above the cap with no UK tax to credit — the single most common UK-property surprise for US citizens.
Related terms
Does Private Residence Relief apply to your situation?
Cross-border tax turns on the detail of your circumstances. Book a free consultation and we'll tell you exactly where you stand.