Call 0117 254 1166 - Email info@elitefinancialaccounting.com

Consultation on ancillary capital gains reliefs

A capital gains tax exemption applies when an individual disposes of a dwelling that has been used as their only or main residence under the Private Residence Relief rules.

A capital gains tax (CGT) exemption applies when an individual disposes of a dwelling that has been used as their only or main residence under the Private Residence Relief (PRR) rules. The exemption applies as long as the relevant conditions are met throughout the total period of ownership. This relief is supplemented by ancillary reliefs that aim to deal with other related situations.

The government has previously announced and legislated to reform two of the ancillary reliefsĀ  to better target PRR at owner-occupiers. The reliefs which are being amended are:

  • the final period exemption will be reduced from 18 months to nine months, although the special rules that give those with a disability, and those in care, an exemption of 36 months will not change
  • lettings relief will be reformed so that it only applies where an owner is in shared occupancy with a tenant.

These changes will take effect from 6 April 2020. The government is now consulting on the changes in more detail and on how they will work in practice. It also invites views on some technical aspects of the PRR rules.

Internet link: GOV.UK consultation

Receipt Bank xero.png
Copyright

© 2019 Elite Financial Accounting. All rights reserved.

powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
0117 254 1166


Quick links

Home | Cheltenham Accountants | Bristol Accountants | Contact us | Site map | Accessibility | Disclaimer | Help |

Bristol Office
Elite Financial Accounting, 609 Fishponds Road, Fishponds, Bristol, Avon BS16 3AA
Cheltenham Office
Elite Financial Accounting, 111 The Promenade, Cheltenham, Gloucestershire GL50 1NW

No 08659473, 609 Fishponds Road, Bristol, BS16 3AA. Registered in England and Wales