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Our ServicesHow to sell your Home and keep tHe proceeds Making the most of Principal Private Residence Relief

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Valuations

SavillsLansdowne House 57 Berkeley SquareLondon, W1J 6ER+ 44 (0) 207 499 8644

Savills is a leading global real estate service provider. Established in 1855, we now have over 200 offices and associates around the world. Savills provides hundreds of services across all property sectors across the globe. The following list will give you an insight into the range of services we are able to provide.

How to sell your home and keep the proceeds Making the most of Principal Private Residence Relief How to sell your home and keep the proceedsMaking the most of Principal Private Residence Relief

principal private residence reliefA key subject on which Savills offers advice is qualification for Principal Private Residence Relief (PPR) from Capital Gains Tax (CGT). This relief can exempt a homeowner from CGT when selling their principal home and planning is essential if the risk of not securing the relief is to be minimised.

capital Gains taxCGT can be levied on gains made on the sale of certain assets, such as houses. It is therefore vital that property owners protect themselves and make the most of the reliefs available.

Qualifying for ppr?To qualify for PPR, broadly speaking, a homeowner will need to have lived at the house and used it as their principal residence from the date when occupation was first taken, or from March 31st 1982, whichever is the later date. Other rules apply and we can guide you through these as appropriate.

the caveats

• PPR can be applied on the capital gain made from a house, its outbuildings and grounds. The property’s total area should not exceed 0.5 hectares (1.25 acres) - the “permitted area”.

• PPR cannot be applied to additional land or buildings beyond the permitted area, unless it can be shown that they are “required for the reasonable enjoyment of the property”. (Savills has successfully negotiated the inclusion of larger areas including ancillary accommodation and careful drafting of a valuation report can significantly assist in such a claim).

• PPR cannot be applied to any land or buildings used exclusively for business purposes.

• PPR cannot be applied if the house was bought in order to make an early sale at a profit.

This list is not exhaustive and Savills can advise you and ensure you secure the maximum qualification for PPR.

obtaining a Valuation / adviceThe benefit of securing PPR is obvious, but it can be challenged by HMRC. Where a claim for PPR may be challenged, a methodical approach to valuing a property and apportioning its assets between qualifying and non-qualifying is vital.

the Benefits of tailored advice By securing a thorough and detailed valuation, with supporting evidence you will be able to:

• Identify the extent of your property that will qualify for PPR.

• Determine whether you will need to engage with the Valuation Office Agency to negotiate for PPR if your property extends beyond that on which PPR would normally be permitted. (Savills has a track record of success in such negotiations).

• Consider whether there is scope to increase the land holding if it is less than 0.5 hectares and whether this would add value.

• Review the implications of any future projects planned on the property (e.g. a barn conversion, leasing or disposing of land).

• Plan for the future and create a balance between the best use of your assets and the possible trade off of reliefs.

• Consider PPR in association with other tax reliefs (e.g. Agricultural or Business Property Relief).

the next steps For further information please contact:

National Clive Beer +44 (0) 207 877 4724 cbeer@savills.com

Scotland Hugo Struthers +44 (0) 141 222 4105

North Johnny Dudgeon +44 (0) 1522 508 952

Central Christopher Poole +44 (0) 1242 548 033

East Michael Horton +44 (0) 1473 234 813

South & South East Charlie Seligman +44 (0) 1962 834 016

South West Mike Townsend +44 (0) 1392 455 708