Am I right to understand that the “capital gain tax rental relief” is going away?
If so, has anyone got a few worked examples of how bringing forward a sale of a past main home that has been rented out for a long time so the sale comes under the current rules would affect capital gains tax? (Assume it was planned to sell the property at the end of a fix rate mortgage that finish after the changes come in.)
For example:
Cost £50K
Could sell for £250K now
Lived in for 11 years
Then rented out for last 10 years
Replies (6)
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Have a look at the Treasury website where there will be details of all the Budget proposals.
in part yes. in future from next tax year ( i think) rental relief will only apply when the property is shared with renters . so the maximum relief of £40k @ the ruling tax rate will have to be factored into whether to sell now or wait for a price increase
Frankly, I never understood the logic of the relief, but it seems that it will have very limited application in the future. How many people let out a room exclusively in their main residence? Without seeing the detailed changes, it seems that it would be preferable to be able to demonstrate non-exclusive use (per current treatment of business etc occupation) and you continue to have 100% PRR.
It seems to me that an identical result could have been achieved by simply abolishing it.
See Rebecca Cave's comments at https://www.accountingweb.co.uk/tax/personal-tax/budget-2018-cgt-blow-fo...