Under current rules any gain on one’s main residence is free of capital gains tax. The relief is reduced pro-rata for time when the owner was not in occupation but, once a property qualified as a main residence, the final three years of ownership was treated as qualifying for relief.
That final three year period is to be reduced to 18 months with effect from April 2014. Notwithstanding the changes, the main residence relief remains generous, particularly as there are tax breaks for those who let the property in their absence or who are required to live elsewhere for the purposes of their work.
To discuss this or any other concerns arising from the Autumn Statement please contact our tax partners, Clare Munro and Phil Moss or your usual Lubbock Fine contact.