Key capital gains tax changes for 2020/21
Increase the capital gains tax (CGT) bills of landlords who sell their property.
Only owners who previously lived in the property can claim these reliefs. The change is to Principal Private Residence relief (PPR) which generally exempts main homes from CGT. Up to now, the last 18 months of property ownership have been free of CGT for most people, but this period will now be cut to just nine months from this April.
Landlords have also been able to qualify for an additional “lettings relief”, that can potentially reduce the taxable gain by up to £40,000. After April, this relief will now only apply when the owner of the house has shared the occupancy with a tenant.
Levels and bases of taxation and tax reliefs are subject to change and their value depends on individual circumstances.
The Financial Conduct Authority does not regulate tax advice.
Tax laws may change
The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.