It's all change for Capital Gains Tax on sales of domestic housing and for Private Residence Relief
The new tax year has brought with it many changes, one to be aware of is the drastic change to CGT and PRR.
Capital Gains Tax
Previously, the capital gains tax payable by UK residents on the sale of investment properties was payable by 31 January following the tax year of disposal. From April 2020 this has reduced to 30 days from the date of completion for residential property.
If you are selling a property that doesn’t benefit from private residence relief (e.g. holiday homes, rental properties) then this change will apply to you.
Private Residence Relief
From the 6th April 2020 there are also changes to the tax relief available when you sell your main residence including: the final period of occupation has been reduced from 18 to 9 months; and lettings relief has been restricted. This could mean that your there is capital gains tax payable on your main property which would bring you into the 30 day reporting requirement.
If you’re sat at home thinking of selling a property, please therefore seek professional guidance beforehand.
If you require any help navigating your way through this all then please do get in touch, we are here to help.
Disclaimer: The information contained in this article is intended to be a guide and is not intended to be exhaustive. No action should be taken on the basis of information contained herein without obtaining the necessary advice. No responsibility can be accepted for loss or damages occasioned to any person acting or refraining from acting as a result of the material contained herein.