On 1 April 2019, HMRC published a consultation document on plans announced in the Autumn 2018 Budget to reduce the final period exemption for capital gains tax (CGT) principal private residence relief (PPR) from 18 months to nine months. Relief will also be limited so that letting relief will only apply when the owner shares occupancy with the tenant. These changes will apply to disposals on or after 6 April 2020.
The consultation also seeks views on the following proposed technical changes that were not announced in the Autumn 2018 Budget.
- legislating for extra statutory concessions D21 (late claims in dual residence cases) and D49
(short delay by owner-occupier in taking up residence) in their current form
- extending job-related accommodation relief to service personnel in cases where they live in accommodation not technically provided by the Ministry of Defence (MOD) but where they rent in the private rental sector as part of the MOD’s future accommodation model
- making changes to no loss/no gain treatment for transfers of residences between spouses or civil partners, in certain circumstances.
The consultation closes on 1 June 2019.