United Kingdom


  • Industry: Real Estate
  • Type: Press release
  • Date: 05/12/2013

Autumn Statement 2013: Halving of final period rule  

• But may prompt rush of property sales before the measure bites next April


Thursday 5th December 2013


Commenting on today’s Autumn Statement, Daniel Crowther, partner in the private client advisory practice, at KPMG in the UK, said:


“The halving of the final period exemption from capital gains tax came as a surprise and will be a shock for many second home owners. 


“This exemption applies to a property that has been a person’s private residence at some point even though they may not be living in the property at the time they dispose of it and they may be claiming private residence relief on another property at the same time.  From 6 April 2014, this will be halved from 36 months to 18 months.


“Essentially what has been announced today reduces the incentive to ‘flip’ a house – that is to buy a property, use it as a principal private residence and continue to benefit from the CGT exemption for the next three years.


“Affected owners may well be tempted to try to sell up before this measure bites so we could see a rush of properties coming to the market in the next four months.  Whether this will cool the housing market will remain to be seen.


“There may be an extent to which this measure puts people off relocating for work purposes.  It’s quite common that if an owner-occupier is offered a job in a different location to their home, they might rent a flat or house to live in and keep their home a while before they sell it.  The reduction to this final period exemption makes this a less attractive option.”



Follow us on twitter: @kpmguk #AS2013




For further information please contact:


KPMG Press office


Tel:  +44 (0) 207 694 8773


Mark Hamilton, KPMG Corporate Communications


Mobile: 07785 337672


Email: mark.hamilton@kpmg.co.uk


About KPMG:


KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.




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Mark Hamilton

Mark Hamilton

Senior PR Manager - Audit, People & Corporate Responsibility

KPMG in the UK

020 7694 2687

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