Capital Gains Tax (CGT) – Private Residence Relief

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HMRC have published responses to the consultation, ‘Capital Gains Tax: Private Residence Relief: changes to the ancillary reliefs’ together with draft legislation as part of Finance Bill 2020.

The draft legislation proposes changes to the Private Residence Relief (PRR) rules for disposals on or after 6 April 2020. 

A summary of the proposed changes are as follows:

  • The final period CGT exemption is reduced from 18 months to 9 months.
  • Lettings relief will be reformed so that it is only available where the owner remains in shared occupancy with the tenant.
  • The spouse to spouse transfer rules are to be changed, so that the receiving spouse inherits the transferring spouse’s period of ownership and the use to which the property was put during that time.
  • The special rules providing 36 months PRR for the disabled and those in a care home will not change.
  • The benefits of job-related accommodation are to be extended to service personnel where they reside in accommodation not technically provided by the MOD but, for example, where they rent in the private sector.

For more information please get in touch on property@wardwilliams.co.uk

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About the author

Simon is the Tax Director at Ward Williams and has more than 20 years of practical experience working in the tax profession.

 

Specialising in personal tax, Simon qualified as a Tax Technician in 2007, having been awarded with the Ivison medal for attaining the highest mark in the Personal Taxation paper in 2006.

 

As department head, Simon oversees the tax team across the Ward Williams group, whilst managing a diverse portfolio of clients including high net worth individuals, doctors, directors of owner managed businesses, partnerships and sole traders.

simon.boxall@wardwilliams.co.uk

01895 236335