Please do not be caught out by the new rules that will affect property sold after 5^th April 2020.

1. Allowable deductions are being slashed
2. Returns and tax will be due within 30 days

Allowances

1. You will only be given 9 months, in which to sell your property after moving out, before capital gains tax becomes due
2. If you have ever had the property as your family’s main residence, then you retain deemed residence for a period before sale – this too is being reduced from 18 months to 9 months,
3. Current lettings relief of up to £40,000 per person is being abolished – an allowance for a property you have been renting out but that you used to live in.
4. A new lettings relief in being introduced, however this is only formalising the existing relief already available, for property let to individuals sharing your facilities with you e.g. lodgers.

Returns & Tax

There are new obligations, for everyone from 6^th April 2020, to report and make payment on account of Capital Gains Tax within 30 days of sale of property. This also applies to property held as part of a partnership or LLP

Note: this is additional to reporting and settlement on your personal tax returns