The sale of property usually gives rise to a possible Capital Gains Tax liability. However, perhaps one on the most important tax reliefs for most people is the Private Residence Relief. There is no charge to CGT where the property that you have disposed of is you private principle residence.
Where the property is occupied during the whole of the ownership, then all the gain will be tax free. Where there has been periods of absence then apportionment has to be made. Only the gain that is attributable to the period of residence will be tax free. The rest is potentially taxable. However, the last three years of the ownership are always treated as being a private residence provided that the property was occupied at some time during the ownership.
In addition various other periods of absence may also be included in the number of years of private residence, usually determined by the demands of your employment.
However, A word of caution. To claim for private residence relief there must be substantive occupation with intent for the property to be a private residence. HMRC will oppose any claim for the relief when they believe the private residence is a sham. If you intend to use this relief in any form of tax planning you need to take professional advice.