Significant changes to two Capital Gains Tax reliefs were proposed in the 2018 Budget and are due to come into place from 6 April 2020. These are:-
- Lettings relief – it is proposed that this will only be allowable where the owner is in shared occupancy with the tenant; and
- Principal Private Residence Relief – currently this is also available for the last 18 months of ownership but this 18 month period will be reduced to 9 months.
This means that where you are letting a former home, you may be entitled to less Capital Gains Tax exemption than you expect should the proposals become legislation.
If you would like to discuss how these proposals affect you, contact Antony Smith or get in touch on 0330 024 3200 or firstname.lastname@example.org.