HMRC consultation: Private Residence Relief: changes to the ancillary reliefs
Released 1 April 2019
HMRC are inviting views on changes to Capital Gains Tax lettings reliefs and the final period exemption announced at Budget 2018.
At Budget 2018, the Government announced that two of the ancillary reliefs supplementing Private Residence Relief (PRR) would change to better target PRR at owner-occupiers:
•the final period exemption will be reduced from 18 months to 9 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 consultation sets out the Government’s proposed changes in more detail and invites views on how they will work in practice and on some technical aspects of the PRR rules. The consultation closes at 11:45pm on 1 June 2019. Responses can be emailed to: email@example.com or submitted by writing to:
Private Residence Relief consultation, Assets and Residence Team, Business, Assets and International Directorate, HM Revenue and Customs, 3C/03, 100 Parliament Street, London SW1A 2BQ
For more information, see Open consultation Capital Gains Tax: Private Residence Relief: changes to the ancillary reliefs.