Landlords and owners of second homes who have to pay Capital Gains Tax (CGT) on the sale of their additional property, now have to report and pay the tax within 30 days from 6 April 2020.
Private Residence Relief allows people to sell their main residence without incurring a capital gains tax charge. It covers the time spent living in the property, plus an additional period of relief known as the final period exemption.
Changes to the relief, which were announced in Budget 2018 and confirmed in Finance Bill 2019/20, will reduce the final period exemption from 18 months to 9 months from 6 April 2020.
Lucy Orrow has prepared a separate article which considers two different scenarios which might assist with calculating the gain arising: Please see Principal Private Residence Ownership and Reliefs >>
Part 1:
In the first of a two-part video series, Lucy looks at the new rules, specifically regarding Principal Property Residence Relief (PPR) which is available on the sale of your home and Lettings Relief which applies when you are renting out your home. Click to View >>
Part 2:
In part two, Lucy looks at Capital Gains Tax (CGT) and the new reporting rules. Click to View >>
If you have any questions regarding this subject, you can contact Lucy at our Braintree office on 01376 326266 or email your enquiry to lucy.orrow@lambert-chapman.co.uk.
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.