Last updated: 14 October 2026
How long do you need to live in a former rental property to get private residence relief?
There’s no fixed minimum period. Private residence relief (PRR) depends on whether the property was genuinely your home, not how long you lived there. HMRC looks at the quality of occupation: did you move in permanently, with the intention of living there? A few months can be enough if it was truly your home, but a short stay to try to reduce CGT is likely to be challenged.
How the relief works for a former rental
If you lived in a property that you also let out, the gain is split. The share for the time you lived there, plus the final 9 months of ownership, is tax-free. The rest is taxable.
| Period | Treatment |
| Years you lived there as your main home | Exempt |
| Final 9 months of ownership | Exempt if it was your home at some point |
| Years let out | Taxable, unless lettings relief applies |
| Absence periods (up to 3 years, or longer for work) | Can be exempt if you lived there before and after |
Lettings relief
Since April 2020, lettings relief only applies if you shared the property with your tenant while you lived there. Most landlords who moved out and let the whole property no longer qualify.
Example
Grace bought a flat in 2010 and let it out until 2022. She then moved in and lived there until she sold it in 2026. She owned it for 16 years and lived in it for 4. The exempt period is 4 years, plus the final 9 months already within that time. So 4/16 of the gain is exempt and 12/16 is taxable. If her gain was £160,000, the taxable gain is £120,000 before the annual exempt amount of £3,000.
What HMRC looks for
- Did you move your belongings in?
- Did you change your address with banks, GP and the electoral roll?
- Did you have another home at the same time?
- Did you intend to stay, or were you already planning to sell?
- Council tax and utility bills in your name
Two homes
If you have more than one home, you can nominate which is your main residence within 2 years of the second home becoming available. Married couples and civil partners can have only one main residence between them.
CGT rates and reporting
Gains on residential property are taxed at 18% or 24% in 2026/27. You must report and pay the CGT within 60 days of completion using HMRC’s property reporting service.
Keep evidence
Keep proof of when you moved in and out, such as council tax bills, a tenancy end date, utility bills and your electoral roll entry. If HMRC opens an enquiry, this evidence is what shows the property was really your home. Without it, a claim for relief can be refused.
Frequently asked questions
Is 6 months enough?
It may be, if it was genuinely your home.
Do I get the 9-month exemption if I only lived there briefly?
Yes, if it was your main residence at some point.
Does renting a room out affect relief?
Usually not, if you live there and share it.
Can I avoid CGT by moving back in before selling?
Only the time you live there is exempt.
Related: CGT on your main residence, CGT on first and second property and the CGT reporting deadline.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with capital gains tax on property. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
