Home and Dry? Tax increases for property landlords

17 April 2019

An update on changes to Capital Gains Tax lettings relief

Shortly after the Budget last Autumn, I published a blog about changes announced to the PPR and letting relief rules.

HMRC have now published a consultation document giving further insight which confirms the premise of my original blog and the illustrative figures therein were accurate.

The changes will impact the Capital Gains Tax position where a property which was formerly the landlord’s home but has also been rented out to tenants gets sold:

  • the final period exemption for PPR will halve from 18 months to 9 months
  • lettings relief will be reformed so that it only applies where an owner is in shared occupancy with a tenant

These changes are set to take effect for disposals on or after 6 April 2020.

The HMRC consultation sets out the government’s proposed changes in more detail and also invites views on the prospective changes and on how these changes will work in practice.

The consultation closes at 11:45pm on 1 June 2019 and is open to any interested party, not just professionals. You can access it here.

If you think any of the above may be applicable to you, please do not hesitate to contact me or your local UHY specialist to discuss your options.