HOMEOWNERS selling a property in which they previously lived will be given until April 2015 to complete the sale before they must pay capital gains tax on the property, the Treasury confirmed yesterday.

The news comes after George Osborne announced in the Autumn Statement last week that the tax-free period for people letting their former home will be slashed from three years to just 18 months.

The Treasury clarified yesterday that people will have until April 2014 to exchange contracts but until April 2015 to complete, a move it said will “make the tax system fairer”.

PwC tax partner Alison Hill said: “Disabled people and those moving into care homes will be relieved that they still have three years’ capital gains exemption on second homes… Others won’t be as fortunate and people affected may include those getting divorced or who are having trouble selling their old home.”

Source: CityAM