News & Important Dates
Personal Tax on property
The full Budget in November 2018 was never enacted, but it is possible that some proposals will be passed quickly as part of the 2019 FInance Act effective in April 2020:
- Lettings Relief may only be given if you have shared occupancy of the premises with your tenant, effectively abolishing lettings relief for many landlords with let properties.
- The period of claim for Private Residence Relief may be reduced, so that on the sale of a property that has been your only or main residence and then let, only the last 9 months of ownership of that property after you have moved out of it may qualify for relief. At the moment, the period eligible for relief is 18 months. Where the taxpayer is moving into a nursing or care home, the period eligible for relief may remain at 36 months.
- From 6th April 2020, you may be required to submit a provisional calculation of the gain on the sale of residential property with 30 days of completion and pay the tax due. You will have to wait until the submission of your tax return before you can fully adjust for any tax that is due or recoverable.
Therefore, if you are thinking of selling a property that qualifies now for the reliefs available pre April 2020, it might be worth considering a sale in the new few months. If you have other losses that can be crystalised, doing this before a property sale that is after April 2020 may reduce the tax payable.
These measures may never be passed but we shall be happy to help with any calculations if this might affect you.