This is only relevant if you have a property which has been used as your main residence at some time and has been let at some time.
If you sell such a property by 5 April 2020 you have two generous tax reliefs:
- Private Residence Relief (PPR) for the last 18 months that you owned the property, regardless of whether you lived there or not during those final months. This exemption period is being reduced from 18 to 9 months from 6 April 2020.
- Letting relief can significantly reduce the taxable gain (in some cases by up to £40,000). Letting relief will no longer be available from 6 April 2020.
The two reliefs can be claimed together and can save up to £20,000 in capital gains tax. Sales completed on or before 5 April 2020 will still be eligible for the above reliefs, and therefore it may be very beneficial to sell such a property before the start of the next tax year.
Do get in touch if you’d like to have a chat with us about the information above. You can give us a call on 01865 582064 or book an online meeting with either Barry or David