What must an individual do to claim principal private residence relief if they own more than one house?

To claim principal private residence relief when an individual owns more than one house, it is essential to elect for one of the properties to be treated as the main residence. This election must be made within a specific timeframe, which is typically two years from the date of acquiring the second property. By doing so, the individual specifies which property is considered their main residence for the purpose of relief on any capital gains tax that may arise upon the sale of that property.

This mechanism allows the homeowner to choose the property that they primarily occupy or wish to have exempt from capital gains tax when sold. The ability to make this election is crucial for individuals in situations where they might have multiple homes, ensuring that they can optimize their tax position based on their personal circumstances.

The alternative options do not align with the established tax rules. Selling the other property before claiming relief would not be necessary; instead, the focus is on selecting which residence to claim relief for. Claiming relief proportionately for each property is not typically how principal private residence relief operates, as only one property can be elected at a time, barring specific circumstances. Transferring ownership of a property to a family member does not inherently allow for the claim of relief but could complicate the individual's tax situation and