{"id":723,"date":"2019-08-02T00:00:00","date_gmt":"2019-08-02T00:00:00","guid":{"rendered":"http:\/\/taxbak.co.uk\/index.php\/2019\/08\/02\/changes-to-private-residence-relief\/"},"modified":"2019-08-02T00:00:00","modified_gmt":"2019-08-02T00:00:00","slug":"changes-to-private-residence-relief","status":"publish","type":"post","link":"http:\/\/taxbak.co.uk\/index.php\/2019\/08\/02\/changes-to-private-residence-relief\/","title":{"rendered":"Changes to private residence relief"},"content":{"rendered":"

If you rent out all or part of your home this may create a Capital Gains Tax (CGT) charge when you sell the property.<\/p>\n

Presently, HMRC excludes the last 18 months of your ownership – even if the property is let for this time – when assessing any CGT liability. In a draft of the Finance Bill released last month, HMRC have confirmed that this 18 month period will be reduced to 9 months from April 2020.<\/p>\n

The exemption for disabled property owners or those in a care home will continue to be 36 months.<\/p>\n

The draft Finance Bill also confirms a change to the letting relief rules.<\/p>\n

Letting relief is an extra deduction you can make from any CGT payable as a result of letting your home. You can claim the lowest of the following three amounts:<\/p>\n

    \n
  1. The same amount that you can claim as private residence relief.<\/li>\n
  2. £40,000.<\/li>\n
  3. The same amount as the chargeable gain you made from letting your home.<\/li>\n<\/ol>\n

    From April 2020, you will only be able to claim this letting relief if you are in shared occupancy with the tenant.<\/p>\n

    Property owners contemplating the disposal of their home – which is or has been let for any period – may be advised to complete their sale before April 2020. In this way they will benefit from the 18 month exemption and the more flexible lettings relief.<\/p>\n","protected":false},"excerpt":{"rendered":"

    If you rent out all or part of your home this may create a Capital Gains Tax (CGT) charge when you sell the property. Presently, HMRC excludes the last 18 months of your ownership – even if the property is let for this time – when assessing any CGT liability. In a draft of the […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-723","post","type-post","status-publish","format-standard","hentry","category-uncategorized","blog-left-layout","blog-style-postblock","","blog-alt-odd"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/723","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=723"}],"version-history":[{"count":0,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/723\/revisions"}],"wp:attachment":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=723"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}