NEWS

Proposed Private Residences CGT Changes

Included in the Budget 2018 was an announcement that lettings relief is to reformed so that it will only be available in circumstances where the owner of the property has shared occupancy with a tenant. Also, it is proposed that the current final 18 months period of exemption, when a property has been occupied as a main residence at any time, will be reduced to 9 months.

The Government are to consult on these changes with a view to introducing the new rules from April 2020.

These changes, if implemented, could have a significant negative impact on the tax liabilities for anyone who has at any time lived in a property as their main residence and which has also been let. It could also result in some taxpayers paying tax if there is a delay of more than 9 months selling their home.

We would hope that the impact of any changes will be carefully considered during the consultation over the coming months and there will be more clarity in time for taxpayers to consider the impact on them and in some cases to take appropriate action if required.

12/12/2018