Home Flipping Capital Gains Tax Relief Questionable

[skomer]

Apart from MP's i'm not too sure how widespread this is - but must be reasonably common for the Office of Tax Simplification (??) to be interested....

In todays Telegraph.....

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8199773/Home-flipping-capital-gains-tax-relief-is-questionable-says-OTS.html

"..Home flipping capital gains tax relief is 'questionable', says OTS

Rules that allow home owners to "flip" their main residence to avoid capital gains tax (CGT) when they sell should be tightened, an official review of tax reliefs suggests.

It was "questionable" the three-year period in which property owners can elect which house is their main home for capital gains purposes should exist, the OTS said. This relief, it said, "supports the practice of 'flipping'" main and second homes, as highlighted during the MPs' expenses scandal.

It said the period was "too long" and the legislation needed rewriting. But it said the core CGT relief should stay"

Edited December 14, 2010 by skomer