28-08-2019
New CGT rules for homeowners

Currently, if a property has been occupied at any time as an individual’s main private residence, the last 18 months of ownership are disregarded for CGT purposes. This relief applies even if the individual was not living in the property when it was sold. From April 2020, this final exempt period will be reduced from 18 months to 9 months. There will be no change to the 36 months exempt period available for those that are disabled or moving into care homes.

Effectively, this change has already started as the 9-month rule will have retroactive effect for any sale that takes place on or after 6 April 2020. If a homeowner starts letting their house out now, leaves it empty or moves out, they can be caught out by the new rules if they do not sell the house until next April. This means the homeowner could be presented with an unexpected CGT bill.

The intention of this relief was to protect those who had difficulty selling their original home after purchasing a new home. However, the long exemption period allows all qualifying homeowners to accrue CGT reliefs on two properties at the same time. The Government is concerned that this relief is being used by some homeowners / landlords who intentionally hold on to a property they have lived in to benefit from the CGT reliefs available.

Source: HM Revenue & Customs | 28-08-2019

Back

Post a Comment

Your email address will not be published. Required fields are marked *

*

  • ABOUT US

    the accountancy practice kent logo

    The Accountancy Practice is a Kent based firm specialising in small and medium sized businesses. We provide a friendly, professional service and regard our smallest client as important as our largest.
  • Latest News

    12-09-2019
    New checker tool to help businesses prepare for Brexit

    The government has ... read more

    12-09-2019
    Immigration rights of EEA citizens in the event of a no-deal Brexit

    The Government has ... read more

    11-09-2019
    Information Commissioner’s Office publishes no-deal Brexit guidance for small and medium-sized organisations

    The Information ... read more

    More news

  • CONTACT US

    The Accountancy Practice
    10 Churchill Square
    Kings Hill
    West Malling
    Kent ME 19 4YU

    01732 897929

    Fax: 01732 897939
    info@theaccountancypracticeltd.co.uk


    Facebook
    Twitter
    Linkedin
  • Why choose us

    By working more closely with you than traditional accountants, The Accountancy Practice is able to gain a deeper understanding of your individual business needs. We are then on hand to support you with day to day issues and provide ongoing financial and taxation expertise. You can think of us as your virtual Financial Director.