Jonathan Drysch, Associate Director, Wealth Planning at Killik & Co, in reference to the Budget clause pasted below.
“This sounds suspiciously like the government is closing down lettings relief as it is unclear how many people would benefit from this relief following the change. Why not just shut it down entirely?”
In reference to the following clause:
3.41 Capital gains tax – To better target private residence relief at owner occupiers, from April 2020 the government will reform lettings relief so that it only applies in circumstances where the owner of the property is in shared occupancy with the tenant. The final period exemption will also be reduced from 18 months to 9 months. The government will consult on these changes. There will be no changes to the 36 months final period exemption available to disabled people or those in a care home. (57)