PPR and Lettings Relief: an Update

14th May 2019

Shortly following the last autumn budget, I published a blog “CGT Reliefs – Hit with Both Barrels!”, regarding the changes announced to the Principal Private Residence Relief (PPR) and letting relief rules.

 

HMRC have now published a consultation document, which can be found here:

https://www.gov.uk/government/consultations/capital-gains-tax-private-residence-relief-changes-to-the-ancillary-reliefs

 

The consultation period closes at 11:45pm on 1 June 2019.  The document gives further details about the proposed changes and how they will impact the Capital Gains Tax position in the event of a sale, including worked examples.

The two main changes 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 above changes apply for all disposals made on or after 6 April 2020.

 

The HMRC consultation sets out the government’s proposals in more detail, and invites views and comments on how the planned changes will work in practice.

 

Other Changes

 

The consultation document also proposes three technical changes relating to the armed forces, legislating extra-statutory concessions and, finally, additional changes to the rules surrounding inter-spouse transfers, and the inheritance of the PPR past history in these circumstances.

 

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: https://www.gov.uk/government/publications/capital-gains-tax-and-corporation-tax-on-uk-property-gains/capital-gains-tax-payment-window-for-residential-property-gains .

 

Please speak to your usual W&P contact for any further information or guidance.



 
Other items in Blogs
 
Lisa Smith
29th September 2020 Extension to deferment of VAT due

On 24 September 2020 the Chancellor announced and extension to scheme allowing for the deferment of VAT for businesses affected by Corona Virus.  Businesses that took advantage of the arrangements to defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021, will have the option to pay the outstanding amounts…

Read More »

Chris Kelly
25th September 2020 COVID-19 Business Support – Winter Economy Plan

  With the Autumn Budget cancelled the Chancellor has announced a Winter Economy Plan introducing a package of measures to support businesses.   The highlights are:   The Coronavirus Jobs Retention Scheme (CJRS) – Will end as planned on 31 October 2020.   A new Job Support Scheme – To support viable UK employers who…

Read More »

Steven Denton
25th September 2020 HMRC Job Support Scheme (JSS)

On 24th September the government announced the launching in November of the Job Support Scheme to replace the existing Furlough Scheme that is feted to end on 31st October. The JSS is to run from 1st November through to 30th April, but initial rules may be amended after three months.   To qualify for the…

Read More »

Matilda Mawson
25th September 2020 2019/20 Pension Savings Statement – Request yours today!

  If you have made contributions to a registered pension scheme of more than £40,000 in the tax year, your scheme administrator should automatically send you a pension savings statement by 6 October 2020. This will detail your total pension input for the 2019/20 tax year as well as your pension input for the 3…

Read More »

Ian Piper
24th September 2020 Corporation Tax due soon: Not necessarily.

Companies with 31 December 2019 year ends will be due to pay their corporation tax on 1 October 2020. If that company is expecting to suffer a loss during the 2020 financial year, perhaps due to COVID-19 related reasons, it should be possible to carry that loss back one year and claim a refund of…

Read More »

Ruth Pearson
17th September 2020 Fuel Rates From September 2020

HMRC have updated the latest company car advisory fuel rates. These rates apply from 1 September 2020.   The guidance states that you can use either the previous or current rates, for up to one month from the date the new rules apply.   The new rates per mile are below: Engine size Petrol LPG…

Read More »