Extract from - FT Adviser - 6 August 2019
Under the previous rules, an individual who let a property to a tenant, rather than leave it empty, could claim up to £40,000 in capital gains tax relief when they came to sell the property.
This was introduced in the subdued housing market of the 1980s to encourage individuals to rent out spare rooms in their homes. But it was soon used by people who were renting out properties they owned but did not live in, as long as it was declared as their primary residence.
From April 2020, this will no longer be the case, and an individual must actually be living in the property at the time of the sale or they cannot claim the relief.