Last updated: 14 October 2026
Do you get tax relief if you didn’t live in the house when it was sold?
Often, yes. Private residence relief covers any period the property was your only or main residence, plus the final 9 months of ownership, even if you’d moved out by then. So if you lived in a house and then moved out and let it or left it empty, part of the gain is still tax-free. The rest of the gain is taxable at 18% or 24%, after the £3,000 annual exempt amount. If you never lived in it as your home, no relief applies.
How the relief is worked out
| Period | Relief? |
| Time you lived there as your main home | Yes |
| Last 9 months of ownership | Yes, always, if it was your main home at some point |
| Up to 3 years away for any reason, if you lived there before and after | Yes |
| Working abroad, any length, if you lived there before and after | Yes |
| Working elsewhere in the UK, up to 4 years, lived there before and after | Yes |
| Time let out after you moved out permanently | No (lettings relief only if you shared with the tenant) |
The gain is apportioned on a time basis between relieved and non-relieved periods.
Example
Sarah bought a flat in April 2016 for £200,000 and lived in it until April 2021. She then moved in with her partner and let the flat. She sells in April 2026 for £320,000, a gain of £120,000. She owned it for 120 months. Relief covers 60 months of occupation plus the last 9 months, so 69/120 of the gain, £69,000, is exempt. The remaining £51,000, less £3,000, is taxable: at 24%, that’s £11,520, reported and paid within 60 days.
Lettings relief
Since April 2020, lettings relief only applies if you lived in the property at the same time as the tenant. For most former homes now let, it doesn’t help.
Periods before you moved in
If you couldn’t move in straight away because of building work or selling your old home, up to 2 years can count as occupation if you then move in.
Spouses
If you transfer a share of the property to your spouse, they inherit your periods of ownership and occupation for relief purposes.
Disabled people and care homes
The final period exemption is 36 months, not 9, if you or your spouse move into a care home or are disabled and have no other home.
Common mistakes
- Forgetting the final 9 months
- Not claiming absence relief for work periods
- Missing the 60-day reporting deadline
- Assuming lettings relief still applies
Records to keep
Keep evidence of when you lived there (council tax, electoral roll, bills) and when it was let (tenancy agreements). These prove the periods for the calculation.
Frequently asked questions
Can I nominate a second home?
Yes, within 2 years of having two residences.
What if I lived there for a few weeks?
Quality of occupation matters, not length.
Is the garden included?
Up to half a hectare usually.
Do I need to report if fully exempt?
No, if the gain is fully covered.
Related: how long you must live in a home, making a section 222 election and CGT on separation.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with private residence relief claims. 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.
