Capital Gains Tax: Private Residence Relief: changes to the ancillary reliefs -Consultation Response: Wedlake Bell LLP
01 / 07 / 2019
On 1 April 2019, HM Revenue & Customs published its consultation concerning the changes to Capital Gains Tax (CGT) and Private Residence Relief. Briefly, Budget 2018 announced that the final period exemption will be reduced from 18 to 9 months, and that lettings relief will be reformed so that it is only available in cases where the owner remains in ‘shared occupancy’ with the tenant. Both changes will come into effect for disposals on or after 6 April 2020. Wedlake Bell’s Private Client team have responded to the consultation to put forward their view that the reduction in the final period exemption is unduly harsh, especially giving the current housing market conditions, and that both this and the restriction of lettings relief will most likely result in more clients incurring a liability to CGT. Please click here to read the response.