Previously as long as the property has been your only or main home at some point during your period of ownership, the last three years (36 months) have always qualified for relief even if you did not live there in that period.

From 6 April 2014 the final period exemption will be reduced from 36 months to 18 months.

In recognition that a person moving into a care home may take longer to decide to dispose of their former home, the period will remain a 36 month final period for this group of people.

This measure will not have effect where contracts for the sale of the property are exchanged on or before 5 April 2014 and completed on or before 5 April 2015.

In addition to the above change we understand HMRC are apparently reviewing the tax payer’s ability, with one or more homes, to nominate which property is to be to be treated as the main home. You are entitled to private residence relief on one home. It’s possible that after consultation HMRC may decide to remove a tax payer’s ability to nominate a property from next year.

For further details on the Private Residence relief for capital gains see our previous article which is subject to above changes - Private residence relief from capital gains tax.

If you require any further tax advice on capital gains tax in respect of selling a property and private residence relief please contact us.