How to sell your Home and keep tHe proceeds Our Services

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associates around the world. Savills provides hundreds of services across all property sectors across the
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 Valuations
How to sell your home
and keep the proceeds
Making the most of Principal Private Residence Relief
Lansdowne House
57 Berkeley Square
London, W1J 6ER
+ 44 (0) 207 499 8644
Principal Private Residence Relief
The Caveats
Obtaining a Valuation / Advice
A 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.
• 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”.
The 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.
Capital Gains Tax
CGT 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.
• 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
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
• Consider whether there is scope to increase the land
holding if it is less than 0.5 hectares and whether this
would add value.
How to sell your home and keep the proceeds
Making the most of Principal Private Residence Relief
Making the most of Principal Private Residence Relief
• 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:
Hugo Struthers
+44 (0) 141 222 4105
Michael Horton
+44 (0) 1473 234 813
Johnny Dudgeon
+44 (0) 1522 508 952
South & South East
Charlie Seligman
+44 (0) 1962 834 016
Christopher Poole
+44 (0) 1242 548 033
South West
Mike Townsend
+44 (0) 1392 455 708
Clive Beer
+44 (0) 207 877 4724
[email protected]
How to sell your home and keep the proceeds