June Budget – Private Residence Relief (PRR) and adult placement carers
The Government have confirmed that they will introduce legislation in the Finance Bill which will ensure that an individual’s entitlement to Private Residence Relief (PRR) is retained where an adult placement carer uses part of their home exclusively for the purposes of their business as a carer.
PRR is not usually available on any part of a house which is used exclusively for business purposes. In such cases an appropriate percentage must be used in apportioning the house between the parts entitled to PRR and the rooms (or specific areas) not entitled to PRR.
This legislation will remove this possible restriction on PRR solely for adult placement carers who set aside one or more rooms exclusively for the use of an adult in their care.
The measure will have effect for disposals on or after 9 December 2009, the date this measure was first announced as part of the 2009 Pre-Budget Report.