Should I reoccupy a property increase PPR/main residence relief?

It's a common question. You own a property that used to be your main residence and which is now let. You're interested in reducing capital gains tax on the disposal. Before you sell one option is to reoccupy the property as a main residence - but does this actually reduce the capital gains tax payable? In most cases, no, it doesn't. You'll be looking to claim principal private residence relief on the disposal. Where an individual has occupied a property as a residence for only part of his/her period of ownership then a proportion of the capital gain resulting on the disposal of the property is exempt. This is calculated on the following basis: Capital gain x period of occupation/period of ownership In addition to the period that an individual actually occupies a property as his/her residence, when calculating the period of occupation there are certain deemed periods of occupation which are allowed to be taken into account. The last 36 months of ownership of the property would always be deemed occupation for PPR purposes. Therefore reoccupying the property before selling it won't increase relief for most people as they'd already be deemed to be occupying it. In some cases though more deemed occupation may apply. If you go to work overseas or in the UK you can be deemed to have lived in the UK property even though you don't actually live there provided you don't have another residence during your period of absence. However for these 'extra' deemed residence periods to apply you would need to occupy the property after the actual period of absence. Therefore for most people reoccupation will not provide a benefit but in limited cases - particularly where you've been working away in employer provided accommodation - it may be beneficial.