Everyone knows that being a landlord is a 24-7 occupation, but did you know that you could be cutting pounds off your tax bill just by sitting at home? Well read on to find out how...

The tax man classes your home as your 'Principal Private Residence' (PPR) and in order to prevent people from being hit by a big CGT bill when they sell up and move on, Private Residence Relief (PRR) comes into play.

In a nutshell, if you are looking to sell an investment property, then PRR holds the key to cutting down and possibly eliminating, your CGT liability. You would have to be prepared to live in the property for a period of time but in terms of the potential tax savings to be made this could be a very shrewd move indeed.

There are two types of PRR - full residence relief which applies when you have lived in a property for the entire period of ownership - and partial residence relief which is when you sell a property that has been your principal private residence for some of the period of ownership.

The amount of partial residence relief that can be claimed is calculated by taking a fraction of the periods of occupation over the period of ownership.