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Should we worry over private residence relief?

Should we worry over private residence relief?

The National Audit Office has raised an issue on “exploited” capital gains relief that is set to cost the Treasury £18bn a year in 2015/16 on the grounds that HMRC does not monitor tax relief proportionately.

The Audit Office’s opinion appears to be that the scale of principal private residence relief, the complexity of the rules and the lack of reporting requirements, means that there is scope for wide-scale misuse to go undetected.  The Audit Office believes that HMRC does not monitor tax reliefs on a systematic basis, proportionately to the relief’s value or the risks they carry.

The Audit Office said that while HMRC closely manages some low-value reliefs for businesses it does not always do this for higher value personal tax reliefs, such as principal private residence relief.

Does this indicate a possible tightening up on relief?

 

 

Date: 15th August, 2016
Author: Cathy Corns

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