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Capital Gains Tax

Volume 973: debated on Thursday 8 November 1979

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asked the Chancellor of the Exchequer what representations he has received to extend relief from capital gains tax to private houses owned by landlords of licensed premises and others who are required, as a condition of their employment, to reside at their place of work.

An employee required to live at his place of work who owns a house which he intends in due course to occupy is entitled to relief from capital gains tax if he sells that house. Landlords of licensed premises employed by breweries are covered by this rule. I have received one representation asking for it to be extended to self-employed landlords.

Does my right hon. Friend agree that it is unfair that someone who is debarred by the terms of his employment from ever occupying the house that he needs for his retirement should find himself subject, at some later stage, to capital gains tax? Will my right hon. Friend review the situation?

There are real problems of definition in respect of the self-employed, but I give an undertaking that the matter will be reviewed.

In the light of the continued reduction in the availability of private rented accommodation, particularly for single people, will my right hon. Friend consider exempting from capital gains tax those residential landlords who let part of their premises?

That is extending the issue somewhat, and any Chancellor will wish to protect his revenue base in the next Budget.