Understanding Main Residence Relief and Permitted Absences
When selling your primary home, the last thing you’d want is an unexpected tax bill on the profit. That’s where Main Residence Relief comes into play. It’s designed to protect homeowners from such a tax, especially if the property was their primary residence throughout the ownership. The good news? The final nine months of ownership are always covered, regardless of whether you lived there.
However, what happens if you’ve lived elsewhere for a portion of the ownership?
Breaking Down Permitted Absences
Here’s a snapshot of situations where your absence might still qualify for the relief:
Up to Three Years Absence:
Whether it’s for personal reasons, travel, or work commitments, if you’re away from your primary home for up to three years, you’re still covered. The only condition? The home should have been your main residence both before and after this break.
If your job, or your partner’s job, required you to relocate overseas, this period still counts towards the relief. Ensure the home was your mainstay before the overseas assignment and after you returned.
Four Years Due to Employment:
Sometimes, your job might require you to live away from your primary residence for up to four years. As long as you made the property your main home before and after this period, you’re covered.
Relocating for Your Partner’s Work:
If you had to move because of your spouse or civil partner’s job for up to four years, you’re still eligible for the relief. Make sure your property was the primary residence before and after the absence.
Selling your property shouldn’t be a hassle. With Main Residence Relief and its provisions for absences, many homeowners can breathe easier. Always consult with a professional to understand the specifics of your situation and to ensure you’re making the most of the available reliefs.
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