Simon Misiewicz US & UK Taxes's video: Capital Gains Tax Main Residence Relief - Saves when selling a UK Home Reduce Avoid CGT

0:39 Capital Gains Tax rates and allowances 1:51 Paying tax on selling a home when you make a profit 2:45 Private Residence Relief (PRR) also called Main Residence Relief 3:32 How long do you have to live in a property for it to be classified as a home in order to get Main Residence Relief 5:04 avoid paying Capital Gains Tax (CGT) by moving abroad Discover the truth about Private Residence Relief (PRR) and how it affects selling your UK home. Unravel the complexities of PRR, key dates, and tax forms. Private Residence Relief (PRR) is a tax relief provided by HM Revenue and Customs (HMRC) in the United Kingdom. It's designed to reduce or eliminate the Capital Gains Tax (CGT) liability on the gains made from selling a property that has been your main residence. Here are some key details about Private Residence Relief: Eligibility Criteria: To qualify for PRR, the property must have been your main residence at some point during your ownership. This means you must have lived in the property as your primary home, and it should have been used mainly as a residence, not for business purposes. Exemptions: PRR exempts you from paying CGT on the portion of the property that has been your main residence. This includes the garden and grounds up to a certain size. Any gains attributable to the time the property was your main residence are usually tax-free. Time Periods: The relief covers the time the property was your main residence, as well as the last 9 months of ownership, even if you were not living there during that time. This final period is often referred to as the "final period exemption." Lettings Relief: If you've let out part or all of your property during your ownership, you may also be eligible for Lettings Relief, which can further reduce your CGT liability. Changes in Circumstances: If there are changes in your circumstances, such as moving out of the property before selling it, the rules around PRR may still apply, but there could be implications for the amount of relief you're entitled to. Calculation: The relief is typically calculated based on the proportion of time the property was your main residence compared to the total ownership period, excluding any periods of exemption, such as the final 9 months of ownership. Married Couples and Civil Partners: Married couples and civil partners can only have one main residence between them for the purposes of PRR, which may affect the amount of relief available when selling multiple properties. Use our free US/UK tax calculators: https://www.optimiseaccountants.co.uk Need to file UK or US tax returns? Let us know here https://www.optimiseaccountants.co.uk/become-a-client/ Transfer US$ and UK without the high commission and fees: https://www.currenciesdirect.com/register?afflno=0202110000646508 Book UK tax consultations: Use code YouTube15 to get a 15% discount https://optimiseaccountantsltd.as.me/optimiseaccountantstaxconsultation Get an US & International tax advice - Use code YouTube15 to get a 15% discount: https://optimiseaccountantsinc.as.me/schedule.php?appointmentType=category%3AUS%2FInternational Get UK / US Property Investment Advice: https://optimiseaccountantsltd.as.me/property-investment-advisory-services US specific support Open a UK or US bank account: https://wise.prf.hn/click/camref:1100loBZy Apply for an Individual Tax Identification Number (ITIN): https://www.optimiseaccountants.co.uk/knwbase/itin-form-w7/ File backdated US taxes to the IRS: https://www.optimiseaccountants.co.uk/irs-streamlined-foreign-offshore-procedures-sfop-eligibility-for-back-taxes-fbar/ Get a Cost Segregation study on US Real Estate Property: https://zjf538.isrefer.com/go/csf/Optimise/ Set up a US LLC company: https://www.optimiseaccountants.co.uk/tax-benefits-of-forming-a-limited-liability-company-llc-in-nevada-and-wyoming-for-foreign-investors/ Set up a US C Corporation: https://www.optimiseaccountants.co.uk/services/everything-you-need-to-know-about-starting-your-own-c-corporation/ Want reliable UK/US pension advice: https://planfirstwealth.com/ UK Specific Set up a UK limited company: https://www.optimiseaccountants.co.uk/what-is-a-uk-property-investment-company/setting-up-a-property-investment-company/ Open a UK business and personal bank account and get £50: https://www.tide.co/partners/optimise-accountants/ Get a Stamp Duty (SDLT) refund: https://www.optimiseaccountants.co.uk/stamp-duty-on-buy-to-let-properties/sdlt-refunds/ Claim Capital Allowances on Furnished Holiday Lets (FHL): https://www.optimiseaccountants.co.uk/knwbase/capital-allowances-rental-property/