The Low Incomes Tax Reform Group has welcomed the fact that those moving into care will continue to be able to get relief from capital gains tax on the sale of their home for three years after moving out.
hat the 36 months period would be reduced to 18 months.
This relief reflects the fact that houses can take some time to sell and sometimes people are obliged to move because of their jobs, so they have little control over the timing of a sale. Of course, people moving into care might also sell their homes – and they too rely on this relief. It is therefore welcome news that the 36 month period is retained for people who are disabled, or who are long term residents in a care home, at the tim
Currently, when a person sells their home and moves to another, they can continue to claim their old home as their only or main residence and still get relief from CGT on it for 36 months after moving out. But last week the Chancellor announced te of the sale.
Anthony Thomas, Chairman of the Low Incomes Tax Reform Group, said:
“We are pleased to see the current relief continuing for people who are moving into care. For these individuals this is a very anxious time and it is pleasing to see that the Government recognises that adding to their stress is unhelpful. In many cases the move into care comes at a time of crisis and there is uncertainty as to whether that move will be permanent. This enables the whole family to consider the best options over a longer time frame.”
Notes for editors
1. The Low Incomes Tax Reform Group (LITRG)
LITRG is an initiative of the Chartered Institute of Taxation to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes.
2. The Chartered Institute of Taxation (CIOT)
The CIOT is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.
The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.
The CIOT’s 17,000 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
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