Capital gains tax relief and adult placement carers living in the main home
The measure
Principal private residence (PPR) relief exempts a percentage of the capital gain on the sale of an individual's main residence. The 100% relief is reduced where the property is used for non-qualifying purposes, such as for a business, trade or profession, which could include that of a carer.
PPR relief will now be available to set against any capital gain realised on disposals of a carer's main home, even if one or more rooms have to be set aside for the use by the adult under their care as part of their business as a carer.
Who will be affected?
Individuals who use one or more of their homes exclusively for use by adults under their care under a local authority placement scheme.
When?
The new measures will apply for disposals on or after 9 December 2009.
PPR relief can be valuable given the historical increase in house prices. The clarification to include that part of a carer's home which has to be used by the adult under care is welcome. Without such a change to the legislation carers may have been adversely affected. This would be a disincentive to them taking up such socially important roles.
