ACCA Taxation F6 Practice Exam 2026 – Complete Study Resource

Letting relief is a tax relief that applies in situations where an individual has owned a property that they have lived in as their main residence and then lets out part of that property. Specifically, it allows the property owner to receive relief on any capital gains arising from the sale of the portion of the property that was let out, in addition to Principal Private Residence (PPR) relief that might already be applicable to the entirety of the property.

The rationale behind this relief is to alleviate the financial burden on property owners who are also landlords and have only partially let out a property that they previously occupied as their main home. Thus, it effectively gives landlords a financial advantage when they sell their property by reducing the capital gains tax they might otherwise owe.

The other options do not accurately describe the nature of letting relief. For instance, relief for letting out entire property without occupancy misrepresents the purpose of letting relief, as it specifically pertains to properties that were occupied by the owner at some point. Letting relief is available during the time that the property is let out, not exclusively after a property is sold. Furthermore, it’s not limited to commercial properties; it applies to residential properties where part of the home has been let out.