Capital gains tax relief and adult placement carers living in the main home
The measure
For disposals of a main home the principal private residence relief (PPR) will be available to set against any capital gain realised, even if one or more rooms of the carer's have to be set aside for the use by the adult under their care as part of their business as a carer.
PPR 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.
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 historic 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 valuable roles.
