Capital Gains Tax Changes for Properties from 6th April 2020
1. If a main residence is not occupied by the owner during the last 18 months of ownership, the gain is currently exempt. This period will be reduced to 9 months.
2. If a main residence has been let, Letting Relief of up to £40,000 per individual is currently available. This relief will be restricted to situations only where the owner lives in the property at the same time as the tenant.
3. The disposal of a residential property will have to be declared to HM Revenue & Customs and the tax paid within 30 days of completion i.e. long before the annual Tax Return is due.
The tax implication of the above changes could be costly. You may wish to consider selling a property before 6th April 2020.
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Tony Grant: 7th Nov 2019 14:49:00