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In the Budget 2012 the Chancellor announced measures that the Government believed would ‘simplify the Inheritance Tax regime for relevant property trusts and reduce compliance costs for trustees and practitioners’.
Where a property has been an owner’s only or main residence throughout the whole period of ownership, private residence relief will be available on the capital gain arising on sale.  However, where a property has not been occupied as the owner’s only or main residence throughout the period of ownership, private residence relief may only be available for a proportion of the gain. 

Increased tax charge on multiple settlements

HMRC has issued a consultation on simplifying the Inheritance Tax charges on trusts (the ten yearly periodic charge and exit charge) and has identified the following areas for simplification:
As analysed in previous articles, a limit will apply to restrict the Income Tax relief available to individuals from 6 April 2013 to the greater of £50,000 or 25% of total income.  This legislation will affect some farmers and landowners, especially with the fluctuations in farming results expected in the 2012 and 2013 harvests.