If you have residential properties that you rent out you are liable to Capital Gains Tax when you sell them.   From 6 April 2020 the rules are changing if you lived in the property at any point of ownership.

Changes to CGT from April 2020

Lettings Relief

When you sell a property that you have lived in at some point, you can claim Lettings Relief.  This can give you an additional relief of up to £40,000 per person.

From 6 April 2020 – this relief will be removed UNLESS you share the property with a tenant.

Final Period of Exemption

Currently, when you sell a rental property that you previously lived in you get an exemption for the last 18 months, as well as the months that you lived in it.

From April 2020 – this relief will be reduce to 9 months, plus the months you lived in it.

N.B This will not affect those who are currently living in, or are about to move into, a residential care home, or disabled home owners. In these cases the current exemption of 36 months will remain.

Payment of Capital Gains Tax

Instead of paying your capital gains tax on your next UK tax return. All capital gains tax due on the sale will be due within 30 days.

If you are a non resident landlord, his is already the case.

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