Capital gains tax changes to hit homeowners

homeowners

 

 

 

 

 

 

 

 

More landlords and owners of second homes could have to pay capital gains tax on the sale of their additional property from April 2020, following a change to private residence relief.

 

Private residence relief allows people to sell their main residence without incurring a capital gains tax charge.

 

It covers the time spent living in the property, plus an additional period of relief known as the final period exemption.

 

Changes to the relief, which were announced in Budget 2018 and confirmed in Finance Bill 2019/20, will reduce the final period exemption from 18 months to 9 months from 6 April 2020.