The largest capital gain that most individuals are likely to realise is on the disposal of the house in which they live.
Exemption from tax on capital gains arising from the disposal of an individualís sole or main residence has remained largely unaltered by successive governments since the introduction of capital gains tax in 1965.
This exemption for Capital Gains Tax, referred to as Principle Private Residence relief, has survived, despite some individuals being able to make significant tax-free profits over a short period of time during the recent years of spiralling property prices.
Conversely though, in any period where property prices fall, it also means that tax relief is not available for any losses incurred on the sale of a sole or main residence in a falling market so I am afraid you will not be able to receive any tax relief for any losses you have made should you decide to sell your property now.
By Jo Nockels
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