Skip to main content

Capital Gains Tax

Volume 886: debated on Wednesday 12 February 1975

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer whether he will make a statement on the circumstances in which an owner-occupier who is moved by his employer from one part of the country to another may become liable to capital gains tax on the sale of his house because he has difficulty in finding a buyer.

To meet the case where an owner-occupier puts his house up for sale and moves into a new house but cannot at once find a buyer for his old house, the Finance Act 1965 provides for exemption or relief from capital gains tax even though the owner did not actually live in the house for a period of up to 12 months immediately preceding the date of sale. This period of grace has in normal market conditions given the house owner adequate time in which to find a buyer. As a result, however, of the market conditions that have applied over the past year the 12-month period of grace has in some cases proved insufficient. Whilst these conditions prevail the Board of Inland Revenue will allow a modest extension of the 12-month period if there has been a continuing intention to sell.