If you’re a landlord or property investor it’s likely that you’ll be impacted by new rules regarding Capital Gains Tax coming in to play in April 2020. Capital Gains Tax is paid on any profits made through the sale of a property that isn’t your main residence. In this post we look at Changes to Capitals Gains Tax – what you need to know.
Changes to Capitals Gains Tax – what you need to know?
The changes will affect the time you have to pay your capital gains tax bill, the amount of tax relief you can claim if you previously lived in the property, and how letting relief will work.
1. Payment Deadlines
From April 2020, any landlord selling a property will need to pay the full amount owed within 30 days of the completion of the sale.
2. PRR relief changes
Private residence relief (PRR) means homeowners selling their primary residence don’t have to pay Capital Gains on profits. This will also apply to some extent to landlords who used to live in the property as their main residence, but are now selling it.
From April 2020, this is expected to shorten to nine months. So, when you have not lived in a property that was once your main residence for longer than nine months, you will probably need to pay some CGT on profits you make when you sell it.
3. Letting relief changes
From April 2020, only those who live in the property will be able to claim relief when it is being sold – if you share occupancy with your tenant.
At Pisoria, we ensure that we constantly remain up to date with the latest legislation. Working with us, you can rest assured that your properties are complaint. We hope that you have found this ‘Changes to Capitals Gains Tax – what you need to know’ blog post useful. Find out more about how we can help you here.