Changes to CGT for Private Residence and Letting
For many, owning and selling their own home is thought to be tax-free but, as always, tax is never quite as simple as that.
Principal Private Residence Relief (PPRR) is a set of tax rules which are designed to ensure that the sale of a person’s home is exempt under certain conditions. Generally, if you own one home, live in it and sell it, any gain will be tax-free but suppose you lived elsewhere due to a work secondment and let your old home out, then what?
The existing rules can be complex but allow PPRR for a number of specific absences from the property, including periods of letting. The government is making a number of changes to the PPRR rules and we thought that we should make you aware of the more important ones in our latest bulletin.
Broadly, all of the changes apply to transactions undertaken from 6 April 2020.