The Capital Gains Tax (CGT) section on the website explains what CGT is in more detail, but in summary, and in relation to property, it is a tax on profit made when you sell your property.

If you are a member of the Armed Forces that owns property, you often find you are unable to live in your property because of the location in relation to your duty station, and you therefore live in Service Accommodation.  In this instance, you may choose to let out your property.

In normal circumstances, you would have to pay CGT if you sold the property as you had sold "your main home if you have let it out" (assuming the gain is above the CGT allowance).  As a member of the Armed Forces, however, Service Accommodation would mean "you have been living in job-related accommodation", and assuming the other conditions are met, you would be entitled to full relief.

The 4 conditions (as stated in HS283 Private Residence Relief (2024)) are:

• "The dwelling house has been your only or main residence throughout your period of ownership"
• "You have not been absent, other than for an allowed period of absence or because you have been living in job-related accommodation, during your period of ownership"
• "The garden or grounds including the buildings on them are not greater than the permitted area"
• "No part of your home has been used exclusively for business purposes during your period of ownership. Working from home using a room that is also used for non-business purposes will not prevent entitlement to full relief"

Some key points:

• If you own more than one property, the full relief only applies to the property considered to be your main residence.
• If your spouse occupies the Service Accommodation with you, they would be considered to be living in job-related accommodation.
• This does not exempt you from paying tax on the income generated from renting the property.  See the Tax on Property Income section for more details.