Residential Property Tax News!

Lettings Relief and Principal Private Residence Relief

Following my previous blog regarding the changes announced to the Principal Private Residence Relief (PPR) and lettings relief rules, the consultation period ended on 1 June 2019. You can view the consultation responses here.

HMRC have now published a policy paper on 11 July 2019, along with draft legislation and explanatory notes.  The two main changes, applying to disposals on or after 6 April 2020, are:

• The final period exemption will be reduced from 18 months to just 9. Please note that this change does not affect the relief available for those who move out of their homes and into residential care; the relief in this situation remains at 36 months.
• The reform will limit the availability of lettings relief and restrict it only to those who share occupation of the property with a tenant.

The proposal also makes some revisions to job related accommodation relief for the armed forces, legislates two extra-statutory concessions and, finally, clarifies the rules relating to the transfer of residential properties between spouses or civil partners.

30 Day Payment Window for Residential Property Gains from 6 April 2020

In addition to the above changes, taxpayers are also faced with the reduction to the tax payment window for residential property gains, to just 30 days from completion, for disposals from 6 April 2020.

Further details can be found here.

It’s all change for residential property! If you think you may be affected, or would like to discuss the impact of these changes in more detail, then please speak to your usual Whiting and Partners contact.

Disclaimer - All information in this post was correct at time of writing.