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The tax breaks saving families the most money have been revealed in new data published by HM Revenue and Customs.
But experts warn the schemes could soon become “targets” for the Treasury as it looks to balance the books.
The most lucrative tax break was private residence relief, which saved taxpayers £37.3bn in capital gains tax between 2021 and 2022. Under this relief homeowners pay no tax on any profits made when selling their main home, as opposed to buy-to-let properties. The amount saved through the scheme was up nearly 24pc year-on-year and rose £7.1bn over the last five years.
Claire Roberts, of accountancy firm Moore Kingston Smith, said the “staggering increase” in private residence relief suggests it could be next for the chop.
The Government may be tempted to switch to an “American-like” system for taxing capital gains on property, according to Ms Roberts. In the US, homeowners must pay tax on capital gains in excess of $250,000 made from selling a primary home. Couples get a $500,000 allowance. However adopting a similar system would be “deeply unpopular with middle England,” Ms Roberts said.
Read more at Yahoo Finance