Stopfords
Stopfords

Residential Property and Capital Gains Tax – IMPORTANT Changes from 6 April 2020 – ACT NOW!

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HMRC’s never ending tinkering with the tax legislation involving Landlords has come around yet again as proposed changes could see thousands of Landlords hit with a Capital Gains Tax bill, when selling a property which was once their main residence.

The proposed changes will see the deemed occupation of the previous main residence reduce from the last 18 months of ownership to the last 9 months of ownership. We have therefore, seen the relief reduced from 36 months to 9 months in a short space of time.

The biggest change will see the effective abolishment of what was the very useful “lettings relief”, where individuals let what was once their main residence, after moving out of the property.
Going forwards the relief will only be available where an individual lives in their main residence with a lodger who has access to the other areas of the property.

The removal of lettings relief will lead to an increase in tax liabilities for many individuals and it is vital that you consider whether you wish to sell effected properties before the 5 April 2020.

If you would like to discuss this in more detail, please contact a member of our team on 01623 420 269.

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