Jennie Brown, Tax Partner at Streets Chartered Accountants, discusses the tax implications of residential property ownership and property transactions.
There have been a number of changes over recent years impacting both UK Resident and Non-UK Resident property owners and landlords.
For both existing landlords and those who plan to start out in property, it is important to be aware of the impact of the rules and seek advice when undertaking property transactions such as making purchases, sales, gifts or transfers. In addition, for those who have been landlords for some time, it may be wise to take stock of their property portfolio and fully understand their tax exposure.
Rules impacted by recent changes that landlords will need to consider:
No more Lettings Relief – Previously providing up to £40,000 of relief against capital gains tax (CGT), £80,000 for joint owners, of a property once used as their main residence, this has now ceased. Reduction of Principal Private Residence Relief – The last 18 months of ownership previously exempt from CGT is now reduced to 9 months. Non-UK Resident Company’s change of tax regime – Non-UK Resident companies that carry on a UK property rental business will now be
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