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How long before you can claim PPR!

A question we continually get asked over and over again is ‘How long in a property before I get Private Residence Relief?’

Here is what Arthur Says:
HM Revenue & Customs has not given any specific guidance as to how long you need to live in a property before you can claim the relief.

However as a general rule of thumb, you should look to make it your permanent residence for at least 1 year i.e. 12 months (but it can be less and there have been successful cases for much less than this).

The longer you live in a property the better chance you have of claiming the relief.

HM Revenue & Customs is not necessarily interested in how long you lived in the property. They are more interested in whether the property really was your home!

They want to know whether you really did live in the property!

If you want to claim this relief then here are some pointers that will help you to convince the taxman that a property genuinely was your private residence.

a) Have utility bills in your own name at the property address.

b) Make the property address your voting address on the electoral register.

c) Be able to demonstrate that you bought furniture and furnishings for the property. Keep receipts and prove that bulky furniture was delivered to the property address under your name.

d) Have all bank statements delivered to the property address.

Using the PPR is an effective way to avoid capital gains tax on your buy-to-let properties.