Alan Pink highlights a potential obstacle to capital gains tax private residence relief.
Principal private residence (PPR) relief is an extremely valuable capital gains tax (CGT) relief on selling a person’s main residence. But the relief can be lost if there are ‘tainted’ motives behind the acquisition.
It’s a fundamental principle of the taxation of capital gains in the UK that a person’s own home should be excluded from taxation. There’s a good policy reason for this, which is that property goes up in value in accordance with a completely separate scale of inflation to that applying to other assets, and taxing a person’s home would make it impossible to move without having to put further money in, or ‘scale down’ in order to pay the tax.
Any relief of such a generous nature as
