For the more foot loose landlord the 'carrot' has always been there that if they are prepared to upsticks and live in one of their properties before sale they can 'wipe out' all their capital gain tax liabilities in one swoop by claiming Principal Private Residence Exemption on the property they are looking to sell. I have done this once and obviously it saved me many thousands in a potential Capital Gains Tax (CGT) bill. This will continue despite the changes.
Proposed CGT changes
Where a rental property had been the landlords PPR at any stage, the final 3 years in capital gains were exempt from a landlords CGT liability. The Chancellor has just announced that this exemption will be scaled back from 3 years to 18 months from April. Capital Gains Tax is currently charged at 18% for a basic tax payer and 28% for higher earners.
Most landlords 'won't panic'
Despite the headlines I don't see that this will effect most landlords long-term investment decisions. I'm guessing a handful of landlords where the criteria applies may consider bringing forward the sale of their buy-to-let property. Most of us will just carry on consoling ourselves at the same time that we are far more likely to retire way before all those people clinging on to the idea that their pension will be sufficient and that they will get their OAP before they are 70+.
Tax saving tips on CGT
Landlord Insurance - professional rates - expert broker
Hello,
ReplyDeleteIt is widely agreed that more attention should be paid to the influence of non-economic factors such as institutions on development. But good data on institutions can be hard to find. In the current issue of Governance.
JJ Homes
I agree that most landlords wouldnt really panic over the cut. It is a neccesity in this point of time. Sad but true.
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