Chancellor Cuts PPR Relief Period in Autumn Statement

While measures designed to ensure non-UK residents paid CGT on the sale of residential property were widely trailed in the media prior to today’s Autumn Statement, another measure that will affect many vendors also slipped by relatively unnoticed.

Today the Chancellor announced HM Government’s intention to cut in half the final period exemption for Principal Private Residence Relief (PPR) from Capital Gains Tax on the sale of residential property from the current 36 months to 18 months.

Currently, provided the dwelling house qualified for PPR at some point during a taxpayers period of ownership, the last 36 months of ownership always qualifies for the relief. In the future the deemed period of occupation as the taxpayers principal residence is cut in half to only cover the last 18 months prior to a chargeable disposal.


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