Capital gain tax "rental relief" changes in budget

Am I right to understand that the “capital gain tax rental relief” is going way?

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Am I right to understand that the “capital gain tax rental relief” is going away?

If so, has anyone got a few worked examples of how bringing forward a sale of a past main home that has been rented out for a long time so the sale comes under the current rules would affect capital gains tax?    (Assume it was planned to sell the property at the end of a fix rate mortgage that finish after the changes come in.)  

For example:

Cost £50K
Could sell for £250K now
Lived in for 11 years
Then rented out for last 10 years

Replies (6)

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By Accountant A
29th Oct 2018 18:17

Have a look at the Treasury website where there will be details of all the Budget proposals.

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By carnmores
29th Oct 2018 19:29

in part yes. in future from next tax year ( i think) rental relief will only apply when the property is shared with renters . so the maximum relief of £40k @ the ruling tax rate will have to be factored into whether to sell now or wait for a price increase

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By Ruddles
29th Oct 2018 19:44

Frankly, I never understood the logic of the relief, but it seems that it will have very limited application in the future. How many people let out a room exclusively in their main residence? Without seeing the detailed changes, it seems that it would be preferable to be able to demonstrate non-exclusive use (per current treatment of business etc occupation) and you continue to have 100% PRR.

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Replying to Ruddles:
By SteveHa
30th Oct 2018 08:43

It seems to me that an identical result could have been achieved by simply abolishing it.

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Replying to Ruddles:
By ringi
30th Oct 2018 16:36

Think of a granny flat for example.

Also, remember someone needs to be able to "demonstrate non-exclusive use" going back a long time in the past without knowing at the time they had to document it.

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