Change to Principal Private Residence (PPR) Relief

In addition to the change in the CGT deadline, from 6 April 2020 the final period exemption for Principal Private Residence (PPR) relief has been reduced from eighteen to nine months. PPR relief is the reason why you don’t pay tax when you sell your home. There is a final period exemption as it’s acknowledged that you may not be able to sell your home before you buy your new one, so there is a period of grace to cover any gap in time after you move out of your old home and into your new one.

Further, if you had rented out a property which had been your main residence, then an exemption of up to £40,000 per individual was available to reduce any taxable capital gain up until 5 April 2020.  Since this date, the exemption which is known as lettings relief is only available if you lived in the property at the same time it was let.

Do contact Jacqui Birks at jacqui.birks@theburnsidepartnership.com for more information.