Updated Information

Capital Gains Tax

The autumn 2018 budget has indicated radical changes affecting sales of properties for capital gains regarding the principal residence relief and lettings relief.

Principal Residence Relief

The final period of ownership normally considered to be eligible for principal residence relief would be reduced from 18 months to 9 months, with effect from 6 April 2020.

Lettings Relief

Lettings relief is to be curtailed. From 6 April 2020, it will only be available for properties where the owner is in shared occupancy with the tenant.

Capital gains tax payment window

New rules are to be introduced, which will require a payment on account of the CGT in respect of any chargeable gain arising in the sale of a residential property to be made within 30 days of the date of the disposal giving rise to the residential property gain.

The payment must be made at the same time as a return, which must be filed within the 30-day window.

For UK residents, the measure will take effect from 6 April 2020.

Planning

For those that this may affect it would be worth considering bringing a sale forward to before 6 April 2020 when the new rules begin.

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