Nominating a main residence with a PPR election

Where an individual or couple own two or more residences it is possible to make a principal private residence (PPR) election. Claiming PPR relief provides a full or partial exemption from capital gains tax. The PPR election applies for the purposes of deciding which of two or more residences is to be an individuals (or married couples) main residence and therefore attract PPR relief. This applies irrespective of which of the residences is actually occupied as the main residences. There is a time limit of 2 years from the date that they had a combination of residences. In order to actually be a residence for the purposes of the PPR election, they would need to occupy both properties. One common instance where the Revenue traditionally accept that this is met is where an individual who owns occupies a city property during the week and then returns to the family home at weekends occupies both as residences. If this applies they could consider making a PPR election. In terms of timings it is often beneficial to nominate one property to be the main residence before varying the notice in favour the other property after a few weeks and electing this as the PPR. Therefore, by electing property 1 as the PPR for only a few weeks, they would obtain the last 3 years deemed occupation. Provided they then varied the election in favour of the other property (2) this would mean only a nominal loss of relief on a future disposal of this property. Where a property is fully exempted by PPR relief an additional benefit is that the disposal does not need to be disclosed on the tax return.