You have to ask yourself what the government has against property owners when they appear to be penalising them through the way their property income and gains are taxed.

First there was the change to the way that tax relief was given on loan interest and then there was a change to stamp duty land tax with the penal additional 3% charge on purchases of second properties.

Sadly, more changes are imminent individuals who own residential property.

For disposals that take place on or after 6 April 2020 the period for which you are able to claim main residence relief for the months prior to sale will reduce from 18 to 9 months. The 36 month exemption where an individual moves into a qualifying care home remains unchanged.

In addition, letting relief will only be available where the owner of the property also lives in the property with their tenant. This change will therefore not affect owner-occupiers or landlords who have never lived in the property they are renting out.

Both main residence relief and letting relief are valuable relief’s for property owners when they come to sell their property.

Therefore, if you were thinking of selling a property that either is your main home or has been your main home and is now let out, you may want to consider bringing forward the sale to take advantage of the more favorable reliefs as they stand at the moment.

If you wish to discuss this further and how the changes may affect you, please give me a call.