Selling your rental property?
If you’re considering selling your rental property (which has been previously occupied as your principle private residence), then you should do so before 5 April 2020 to avoid losing valuable Capital Gains Tax reliefs.
Currently, the final 18 months of ownership of a residential property before disposal is allowable for the purpose of private residence relief (regardless of whether or not was occupied). This however is due to reduce to just 9 months as of 6 April 2020. Furthermore, and of potentially greater impact to you, will be the restriction of lettings relief for disposals after 5 April 2020.
Until 5 April 2020, lettings relief of up to £40,000 per owner would have been available in respect to a dwelling house that has at some point been used as their only or main residence and the whole, or any part of the property, has at anytime in their period of ownership been wholly or partly let. The relief will therefore apply if the owner was not living in it at the same time.
For disposals on or after 6 April 2020, the draft legislation proposes that the lettings relief will be reformed so that it applies only in circumstances if the property is in shared-occupancy with a tenant.
For further advice and ways we can save you money, contact us on the below telephone numbers or email us here.
01202 586777 – Bournemouth
01202 555663 – Parkstone