Principal Private Residence (PPR)

Introduction

If you’re planning to sell your home in Ireland, you may qualify for Principal Private Residence (PPR) Relief — a generous tax exemption that can help you save significantly on Capital Gains Tax (CGT). In this guide, we’ll break down everything you need to know about PPR Relief, including what it is, how it works, how to calculate it, and how to claim it.

What is Principal Private Residence Relief?

Principal Private Residence (PPR) Relief is a Capital Gains Tax relief available in Ireland. It applies when you sell a property that has been your main home during your period of ownership.

If the property qualifies, you can claim a full or partial exemption from CGT on the profits (or “gains”) you make from the sale. This includes up to one acre of land attached to the property (usually a garden), provided the land is sold with the home.

This relief only applies to your main residence, not to investment properties or properties used solely for business purposes.

Who Can Qualify for PPR Relief?

To qualify for principal private residence relief, the following conditions must generally be met:

• You owned and lived in the property as your main residence.
• You did not use the entire property for business or rental purposes (or only part of the relief may apply).
• The land sold with the house is less than one acre and was used as part of the home.
• The property is not an investment or business-only property.

Partial Relief: What If You Didn’t Live There Full-Time?

If you didn’t occupy the property for the full ownership period, or used part of it for business, PPR Relief is restricted. Common scenarios include:

• You rented part of the home.
• You used part of the home as a business (e.g., home office).
• You were away due to work or illness.

In such cases, partial relief is available using the following formula:

Exempt Gain = Total Gain × (Period of Occupation ÷ Period of Ownership)

Certain absences still count as “deemed occupation”:

• Last 12 months before sale
• Working abroad (with return to residence)
• Relocation for employment (up to 4 years)
• Hospital, nursing home, or retirement home care

Example: How PPR Relief Works

Let’s say Barry bought a house in 2004 for €480,000 and sold it in 2018 for €580,000. He used 1/5 of the house for business and the rest as his home.

• Chargeable gain: €100,000
• Relief for residential portion (80%): €80,000
• Remaining taxable gain: €20,000
• CGT due (after personal exemption): €6,180.90

Only the portion of the gain related to personal use qualifies for relief.

How to Calculate Principal Private Residence Relief

To calculate your PPR Relief, follow these steps:

1. Calculate your total chargeable gain:
   Sale price – (purchase price + acquisition/sale costs)
2. Apply the relief formula:

Total Gain × (Period of Occupation ÷ Period of Ownership)

1. Deduct any personal CGT exemption:
   Currently €1,270 for individuals in Ireland.
2. Apply the 33% CGT rate to the remaining taxable gain.

You may also need to adjust for development value if the property has commercial or redevelopment potential.

How to Claim Principal Private Residence Relief

You claim PPR Relief when filing your Capital Gains Tax return. Here’s how:

1. Calculate the relief as outlined above.
2. Include it in your CGT computation when completing your return.
3. Submit your CGT return to Revenue by:
   • December 15 (for disposals made between Jan–Nov)
   • January 31 (for December disposals)

For more details, visit the Revenue CGT Reliefs page.

Note: While this guide explains how PPR Relief works, our team at Anytime Tax Refunds doesn’t handle property-related CGT reliefs. If you’re looking to claim other tax entitlements — such as rent credits or employment-related tax refunds — fill out our quick 90-second tax refund form to see what you’re owed.