CGT Private Residence Relief Changes
Draft legislation to be included in the next Finance Bill will make important changes to the calculation of CGT Private Residence Relief. As announced in the Autumn 2018 Budget, there will be a reduction in the final period exemption to just 9 months and stricter conditions for Letting Relief to apply.
Currently where a property has been the taxpayer’s main residence, the last 18 months of ownership counts as a period of deemed occupation. This will be reduced to just 9 months for disposals on or after 6 April 2020. It is understood that this is being introduced to counteract “second home flipping” allegedly used by MPs when they sell their London residences.
If you would like any additional information regarding CGT Private Residence Relief Changes, contact our Tax Partner, Steve Crompton, on the details below:
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394