LITRG welcomes government help for people moving into care - LITRG Press Release
The LITRG 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.
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 that 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 time 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.”
Contact: Robin Williamson (please use form at http://www.litrg.org.uk/ContactUs)