Mon 27 Jan 2020
HOW TO TURN A MILLESTONE INTO A CAUSE FOR CELEBRATION
In yet another change to the tax regime, it appears that private landlords are set to lose out once again. This time it’s proposed changes to the rules surrounding Capital Gains Tax.
Until April 5th this year, landlords who have previously lived in the property they let are eligible for letting relief if they have lived in the property at some point during their ownership, but then moved out and let the property. The relief can cover up to a maximum of £40,000 of gains arising during the periods that the property was let.
Under the proposed changes, from April 6th the letting relief will only be available where the homeowner and the tenant are occupying the property at the same time – so-called shared occupation.
Under the draft legislation, the requirement for shared occupation will apply not only to future lettings, but also any let periods prior to April 6th this year.
This means that many people who let properties after they moved out will lose any relief they would have been entitled to for those let periods, amounting to up to £11,200, and will have little or no time to take action to preserve it.
The answer, as to so many of the obstacles strewn in the path of the private landlord, is to make sure you use a vigilant and proactive letting agent, one who will alert you to such problems as they arise and help you navigate your way around them; one who will help you maximise the return on your investment by ensuring that you receive the highest possible rent.