Important Changes to Capital Gains Tax

Changes to Capital Gains Tax, Private Residence and Letting Reliefs  

From today, 6th April 2020, the government is making a number of changes to Capital Gains Tax, Private Residence and Letting Reliefs on properties.

The changes can be summarised as follows:

1. 30 days to tell HMRC and pay any CGT Tax owed on property sales 
2. Transfers between married couples equalised 
3. Final period of ownership reduced from 18 months to nine months 
4. Lettings relief unavailable for periods where owner is not occupying

Broadly, all of the above changes apply to transactions undertaken from 6th April 2020.

DAILY TAX TIP: Private Lettings Relief.

DAILY TAX TIP: 

Private Lettings Relief. If you sell an investment property that was at some point your main residence, and has been let out during your period of ownership, you can look to claim private lettings relief to reduce the amount of any gain that is subject to capital gains tax. The amount you can claim is the lowest of the amount of private residence relief, £40,000 and the amount of the gain that is chargeable by reason of the letting.