There are two major changes being introduced on the 6 April 2020 to Private Residence Relief (PRR), which are likely to see more people having to pay Capital Gains Tax (CGT) when they sell a home.
Final 18 months relief
Under current rules, the final 18 months of ownership of a property which has been a main residence at some point qualifies for relief. This is set to be cut to just 9 months.
Lettings reliefs
Lettings relief is available if your property is your main or only residence and you have also let out the property as residential accommodation. An individual can claim lettings relief on the period when the property was let out, subject to a maximum amount.
The change to this is that relief will only be available where the owner occupies the property with the tenants at the same time.
Disclaimer
This information is for educational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. © Shoosmiths LLP 2024.