Looking to sell a residential property?
The Government announced key changes that could have a significant impact on the amount of tax paid by private homeowners looking to sell a residential property in the UK.
If you own a house that was once your main residence and was let out, then for Capital Gains Tax purposes, you are currently entitled to some valuable tax reliefs that could save you several thousands of pounds per owner, if you decide to sell.
As it stands, the final 18 month period of ownership is covered by the Private Residence Relief whether or not the owner occupied the property at that time. In addition, the owner(s) could also be entitled up to £40,000 of letting relief each.
From 6th April 2020 these reliefs will significantly reduce and the changes could translate into a substantial rise in capital gains tax payable. With these changes in mind, if you are thinking about putting the property on the market, it is important to consider acting sooner rather than later.
If you are unsure as to how the Capital Gains Tax changes will affect you and would like to discuss this matter further, please contact a member of our team who will be happy to review your individual circumstances.
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