Capital Gains Tax: Tax Allowances

(asked on 30th November 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to review the recent reduction of Private Residence Relief to take into account the effect of the covid-19 outbreak on (a) home viewings and sales and (b) the time taken for the conveyancing process.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 3rd December 2020

Within the Capital Gains Tax (CGT) system, private residence relief (PRR) exempts from CGT the gain a person may make when they sell a residential property that they have lived in as their main home.

In April, changes were made to reduce the final period exemption, in which a previous main residence always qualifies for CGT PRR, from 18 months to 9 months. This change was to better target the relief at owner occupiers and reduce the instances where people can accrue relief on two properties simultaneously.

The Government has no plans to change the length of the CGT Private Residence Relief (PRR) final period exemption.

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