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Venues required by law to record contact details Recording Contact Details The Governments’ new requirements for businesses mean that premises…
The government is currently consulting on important changes to private residence relief that are likely to be introduced from 6 April 2020.
The two possible changes announced in the Autumn 2018 Budget are:
The final period exemption was shortened from 36 months to 18 months. The 36 month period was intended to help taxpayers “bridging” and waiting to sell their previous residence, though the period was being abused by a strategy known as “second home flipping”, resulting in the final period relief being restricted to the current 18 month period of deemed occupation a couple of years ago.
The latest proposal is to reduce the period even further to a 9 month period, though 36 months will still stand for those with a disability or moving into care.
Private Residence Relief (PRR) currently provides a further exemption for capital gains of up to £40,000 per property owner (£80,000 for a couple). The relief was introduced so homeowners could let out spare rooms on a casual basis and still benefit from PRR. The relief was introduced for property owners who share occupancy with their tenant(s).
Since being introduced, the relief has benefited those who let out a whole dwelling that was at some stage their main residence. Landlords use sites such as Air BnB to let out the dwelling, these are the people the government are trying to stamp down under the proposed changes.
Note that those who are renting their property temporarily whilst working elsewhere in the UK or working abroad are unlikely to be affected by the change as there are alternative reliefs available under those circumstances.
Please contact us if you need assistance preparing for the on 01295 477 250 alternatively you can email [email protected] if you need assistance preparing for the possible changes.