New announcement. Learn more

News and advice to help make your business a success
Landlords TaxProperty TaxLandlords Tax ReturnsProperty AccountsProperty Tax ReturnLandlords AccountsChartered AccountantsOnline AccountantOnline BookkeepingOnline Tax ReturnsTax ReturnsYour Online AccountantYour Online BookkeeperBusinessadviceAccountingCashflowSmallbusinessTaxBusinesstipsProperty AccountantTaxplanningVATFurnished Holiday LettingsInheritance TaxPropertyProperty bookkeeperAnnual Exempt AmountCapital AllowancesCapital gains tax propertyComplianceDeductibleexpensesEmployment AllowanceFinanceFinancialmanagementHoliday Lets TaxLandlords AccountantLandlords FinancialMaking Tax DigitalMileage AllowanceMobilephonesPensionPprProperty Company TaxProperty Tax Deductible ExpensesRent a Room ReliefSmall BusinessTaxreturnTimetoPayVAT invoice60 day capital gains limitAccrualsbasisAcquisitionsAdvisoryfuelratesAIAirBnBAllowable Business ExpensesAlphabet sharesAmapAnnual Tax on Enveloped DwellingsAppealAssessmentAsset disposalAssociated CompanyAssociated Company Tax RulesBad DebtBad Debt Tax ReliefBaddebtsBadgesoftradeBeancounterBenefits in KindBreakeven PointBudgetBusiness adviceBusiness asset defermentBusiness coachBusiness ContinuityBusiness EntertainmentBusiness ExpensesBusiness RateBusiness Rates ReliefBusiness tipsBusinessgrowthBusinesstypesBuy or Lease EquipmentBuytoletCapital Allowances for CarsCapitalallowancesCar Capital AllowancesCarry Back LossesCgtChange of Tax BasisChatGPTCIS SchemeCommon TenantCompanies ExpenditureCompanies HouseCompany Account DeadlinesCompany Account FilingCompany Strike OffCompany Tax Efficient PropertyCompulsory Strike OffConstruction Industry SchemeContacthmrcContentmarketingCorporation Tax LossesCorporation Tax New RegimeCorporation Tax RatesCorporationTaxCostsCryptocurrencyDeductible Business ExpensesDepreciationDevelopmentDirectorsDirectors LoansDirectorsloansDisallowable Business ExpensesDiscoveryDisincorporationDividend allowanceDividend Allowance ReductionDividend PlanningDividendsDLADomestic Items Tax ReliefEmployee DiscountEmployee managementEmployeeOwnershipTrustEndoflifeplanningEnquiryEnterpriseResourcePlanningEntrepreneurmindsetEquityExpensesExpenses Allowed For TaxEyetestsFHLsFlippingFurnished Holiday Lets TaxGift AidGrowthhacksHelp to pay tax billsHMO Licensing FeesHMRC complaintsHoliday Lettings TaxHow to apply for a Business LoanHow to Extract ProfitHumourIhtexemptionsIllegaldividendsInheritance Tax Nil Rate BandInvestment Property TaxJoint TenantLandlord RepairsLandlords Self AssessmentLate vat registrationLBTTLeadgenerationLeadmagnetLeanbusinessmodelLetting Agent DisbursementsLetting Agent RecharresLettings ReliefLimitedcompanyLong Lets TaxLongserviceLTTMainresidencereliefMakingTaxDigitalManaged LetsManagement accountingMileage paymentMinimumwageMixedusesdltMortgage costsMortgage Interest ReliefNew propertyNewcompanycarfuelratesNewnicrulesNIC 2023 to 2024NIC savingsNon-taxableOptiontotaxvatOverlapreliefOverpayment ReliefPartnershipPartnershipbusinessesParttimePAYEPAYE by Direct DebitPenaltypointsPension Payments Tax ReliefPerformance-reviewsPeriodsofabsencePersonal financePersonalallowancePersonalguaranteesProfitProfit-and-lossProperty AllowanceProperty Development CompanyProperty IncorporationProperty Investment CompanyProperty investor accountsProperty investor tax tipsProperty LettingProperty Rental BusinessProperty TradingPropertyallowanceRecharges by Estate AgentsRegularpaymentsReimbursedexpensesRent your driveRentalRentaroomResearch & DevolopmentResidence ReliefResidential property gainsRetail stock controlRetainedprofitsRoom for rent taxSASalarySDLTSDLT changesSection 455 TaxSelective Licences LandlordsSelf AssessmentSelf-employednicSelfemployedSeperationServicechargesSimplified ExpensesSmallbizSmallbusinessratereliefSoftwareSpring BudgetStamp dutySuccessJourneyTax Allowance on DrivewaysTax AllowancesTax DeadlinesTax Filing DeadlinesTax Free ChildcareTax free incomeTax on Company VansTax positionTax ReliefTax tips for landlordsTaxbillpaymentsTaxconsequencesTaxincentivesTaxpositionTaxreliefsTaxsesTerminationpaymentsTipsTrade professionalTransfer AssetsTransfer Assets Between SpousesUnpaid RentVAT Bad Debt ReliefVAT DeadlinesVAT DisbursementsVAT PenaltiesVAT registrationVatpenaltiesVatregistrationthresholdWellbeing
TAGS

Take advantage of permitted absences for main residence relief

Take advantage of permitted absences for main residence relief

Main residence relief is a valuable relief which prevents a tax charge arising where a gain is realised on the disposal of a property which is your only or main residence. Where a property has been an only or main residence for some but not all of the period of ownership, the gain is sheltered to the extent that it is occupied as an only or main residence or a period of absence was a permitted period of absence. The final nine months are also protected.

Permitted absences

Main residence relief remains available for some periods of absence.

Qualifying absence 1 –  period of three years for any reason

You can be absent from your main residence for up to three years in total without losing main residence relief, as long as both before and after that period of absence, there was a period when the property was your only or main residence. This is a very valuable relief and can be put to good use to shelter some or all of the gain that would otherwise arise when a property has been let, particularly when combined with the exemption for the final nine months of ownership. The three-year period of absence does not have to be continuous – shorter periods of absence also count, as long as they do not exceed three years in total.

Qualifying absence 2 – working abroad

A period of absence where the duties of your employment are all performed abroad or where you live with a spouse or civil partner whose employment duties are all performed abroad counts as a qualifying period of absence, as long as you lived in the property as your only or main residence before working abroad and:

·         you lived in the property as your only or main residence after working abroad;

·         your were unable to resuming living in the property as your only or main residence as the terms of your employment required you to live elsewhere in order to perform the duties of your employment effectively; or

·         you lived with a spouse or civil partner who was required to reside elsewhere to perform the duties of their employment effectively.

Qualifying absence 3 – 4 years living elsewhere due to work

A period or periods of absence not exceeding four years in total during which you were prevented from living in the property as a result of the place of your work or of a condition reasonably imposed by your employer requiring you to work elsewhere to ensure the effective performance of the duties of your employment is a qualifying period of absence, as long as you lived in the property as youronly or main residence before working elsewhereand:

·         you lived in the property as your only or main residence after working elsewhere

·         you were unable to resuming living in the property as your only or main residence as the terms of your employment required you to live elsewhere in order to perform the duties of your employment effectively; or

·         you lived with a spouse or civil partner who was required to reside elsewhere to perform the duties of their employment effectively.

Qualifying absence 4 – living with a spouse or civil partner working elsewhere

Where you were prevented from living in your only or main residence because you are living with a spouse or civil partner who is required to live elsewhere because of where their work is situated or because of a condition reasonably imposed by their employer requiring them to live elsewhere in order to perform the duties of their employment effectively, as long as the period or periods of absence do not exceed four years in total, the absence will be a qualifying absence for main residence relief purposes. This is subject to the condition that you lived in the property as your only or main residence prior to the absence and:

·         you lived in the property as your only or main residence after working

·         you were unable to resuming living in the property as your only or main residence as the terms of your employment required you to live elsewhere in order to perform the duties of your employment effectively; or

·         you lived with a spouse or civil partner who was required to reside elsewhere to perform the duties of their employment effectively.