Capital Gains Tax changes proposed for rental properties
18th April 2019
The Government has issued a consultation on its plans to make changes to two key capital gains tax rules on main residences relief and lettings relief. If their plans are implemented, landlords who let out a property which used to be their main residence are likely to face a significantly increased capital gains tax liability should they choose to sell the property after April 2020.
Depending upon your individual circumstances, if you are considering selling a rental property which was formerly your home, it may be advisable to try to sell the property before April 2020. Alternatively, if you do not wish to sell the property, there may be ways to trigger a disposal for capital gains tax purposes in order to take advantage of the main residence relief rules before the changes take effect.
If you believe that you may be affected by the proposed changes, we would be happy to review your personal position and advise accordingly. Contact us today.