Private Residence Relief from capital gains tax is a relief that contains traps for the unwary but also opportunities for the well-informed.
Some of the problematic issues for individuals are as follow:
- How much of the land held with a house can be sold tax-free?
- What does recent case law have to say about what it takes to make a house a true “residence”?
- Can CGT relief be claimed on a house used for business on which income tax allowances have been given?
- How much time can be spent away from the home without losing CGT relief?
- What are the implications of a divorce for CGT on the family home?
With the recent extension to CGT for non-UK residents disposing of UK property, it is essential that expert advice is taken.