PPR relief: Finance Bill 2019/20 Changes
This recently published FB2019/20 makes a number of changes to Capital Gains Tax private residence relief (PRR).
The changes are as follows:
- It reduces final period exemption from 18 months to 9 months. This represents even further whittling away of this ‘grace period’ which,up to recently, was 36 months;
- Narrows lettings relief so that it only applies in a scenario where the owner of the property is in shared-occupancy with a tenant;
- makes some revisions to job related accommodation relief by extending it to those cases where a homeowner who is a serving member of the armed forces is in receipt of payments from the Ministry of Defence (MOD) under its Future Accommodation Model;
- legislates 2 extra statutory concessions (ESC);
- Confirms the position surrounding a transfer of residential properties between spouses / civil partners
These changes had already been. announced at Budget 2018 and FB2019/20 sets out the draft legislation.
The changes apply from April 2020 other than the changes to job related accommodation which will apply when the relevant regulations bring the Income Tax exemption into force.
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