While PRR will remain for an individual’s main residence, changes will be made to two ancillary reliefs.
Effective from April 2020, the Government plans to restrict two ancillary parts to Private Residence Relief (PRR). The first part is to reduce the final period exemption from 18 to nine months. This allows the final period of ownership to be covered by PRR even if the property is not the only or main residence during this period.
The second restriction is to lettings relief, which reduces the gain on a property qualifying for PRR by up to £40,000 per owner, where the property was let to residential tenants for part of their period of ownership. Going forward, this relief will only apply where the owner is in shared occupancy with a tenant.