New rules surrounding the payment of Capital Gains Tax on profits made on the sale of a residential property are now just weeks away.
Taking effect on 6 April 2020, the changes will reduce the amount of time individuals have to pay their Capital Gains Tax bill and could significantly increase the Capital Gains Tax due on the disposal of a residential property.
Current legislation will change in regard to Letting Relief, Capital Gains Tax liability and the tax exemption period on principal private residences.
In summary, from April:
- Residential property disposals will have to be reported and Capital Gains Tax paid on them within 30 days of completing a sale;
- Letting Relief (up to £40,000) will only be available if the letting took place at a time when the homeowners shared occupancy of a main residence with the tenant;
- Private Residence Relief, for landlords renting out their former homes, will apply to the full period a taxpayer lived in the property as their main residence plus the final nine months of ownership – reducing from the current ‘final exemption’ period of 18 months.
If you need expert advice on Capital Gains Tax and how the changes might affect you, we can help. You can make an appointment to see Danielle by calling 01254 70 11 11, or alternatively complete our Contact Us form and one of our expert advisors will contact you.