From April 2020 the government will limit lettings relief to properties where the owner is in shared occupancy with the tenant and reduce the final period exemption from 18 months to nine months, Chancellor Philip Hammond outlined in his Autumn Budget.
Hammond said: “As our economy evolves in the digital age, so too must our tax system, to ensure that it remains fair and robust against abuse, and that it raises the revenues we need to fund our public services.
“We recommit to keeping family homes out of capital gains tax. But some aspects of private residence relief extend it beyond that objective and provide relief for people who are not using the home as their main residence.”
He said he will change the capital gains tax rules because in some cases it’s being abused and wants to keep capital tax gains away from private homes.