Why is no capital gains tax (CGT) payable on Lois's sale of her house in the scenario?

• A. Because Lois has lived in it throughout her ownership
• B. Because the sale occurred after 30 years
• C. Because CGT is fixed at zero for main residences
• D. Because she also owns a buy-to-let flat

Answer: (A)

Principal Private Residence Relief is the rule at play here. It provides relief from CGT on the disposal of your main home, and if the dwelling has been your main residence for the entire period of ownership, the whole gain is exempt. Since Lois has lived in the house throughout her ownership, it qualifies for full PPR, so no CGT is payable on the sale. The other points don’t change this: simply selling after a long period doesn’t create an automatic CGT liability, CGT isn’t a fixed zero for main residences, and owning another property (like a buy‑to‑let) doesn’t automatically remove the relief for her main home.