PPR – Lettings relief reform

Mon 29 Oct 2018

The PPR rules typically exempt the capital gain on the sale of your home. The rules are clearly targeted at owner occupiers but for many years a period of letting has been allowed. HMRC are to consult on making this relief conditional on the owner being in shared occupancy with the tenant thereby significantly tightening the availability of relief. This relief has always seemed generous and this new measure aligns well with the intention of PPR benefiting owner occupiers.

PPR also allows for a period of deemed occupancy in the period running up to the sale. This period is to be reduced from 18 months to 9 months. The proposal is that the current 36 months for those moving to care homes is retained.

The PPR rules whilst simple in concept, can be difficult to apply in practice, especially for substantial properties. Mazars LLP Private Client teams are very experienced in managing such claims for you.

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