Rent a room relief
The relief given has a new test for ‘shared occupancy’. This means that the lessor must be living in the property for some of the letting period, so letting out your home while you are on holiday for example will no longer attract the relief from April 2019.
Entrepreneurs’ relief has been extended for holdings that drop below the 5% threshold, where they were eligible for ER before. After 6 April 2019 shares issued for commercial reasons, with wholly cash considerations, that would make a holding drop below the 5% can make a deemed disposal and reacquisition to make a notional gain. This gain can then be deferred until there is an actual disposal.
Capital gains tax payments on account
UK residents making a disposal of UK residential property after 6 April 2020 will have to make a payment on account within 30 days of the disposal, against the CGT liability.
For transactions after 1 March 2019, the Stamp Duty Land Tax return will have to be filed and paid within 14 days, down from the current 30 days.
If you need any advice around the possible changes, don’t hesitate to contact us on 01142664432 or email your enquiry to email@example.com.