Source: HM Revenue & Customs | 31/10/18
As a general rule, there is no Capital Gains Tax (CGT) on a property which has been used wholly as a main family residence. This relief from CGT is commonly known as Private Residence Relief. Conversely, an investment property that has never been used as a main residence will not qualify.
Two changes to the way Private Residence Relief works were announced as part of the Budget measures. The Chancellor confirmed that two ancillary reliefs are to be amended, potentially reducing the amount of CGT relief available on the sale of a relevant property.
The Chancellor also announced a change to the CGT rules on the sale of a residential property. Going forward, if CGT is due, a payment on account will be required. The new rules will apply from April 2019 for non-UK residents and April 2020 for UK residents. This change will mainly affect individuals who are disposing of a second home or rental property. However, there will be exceptions including the limitations to Private Residence Relief mentioned above which result in CGT falling due, and for non-residents.
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Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest: