Budget 2018 CGT on sale of rental property from 2020

sabelu

Can anyone help?

A property was purchased in 1991 for 96k and in joint ownership, the owners lived in the property until 2009 when they rented it out and now plan to sell before the 2020 changes the property is now worth 270k what is the tax liability regards the sale before and after Apr 2020.

It's seems a lot more confusing and expensive.

Regards

tebthereb

Yes the position is looking to be worse if selling in future. The letting relief is likely to be unavailable. The deemed period of occupation at the end of ownership is likely to be reduced.

You would need to crunch the numbers to decide whether the expected changes are significant enough to drive an earlier sale (if circumstances even allow that). Someone here may do that but the owners of this property might be best asking their tax advisor.

jimmo

There is an excellent worked exampleguidance from 00ec 25 in the following thread.
https://forums.moneysavingexpert.com/discussion/5764759/cgt-and-letting-relief&highlight=top
If you follow the guidance there you should be able to work out for yourself the potential liability under the existing rules.
You should then be able to adjust your calculation in accordance with your own understanding of the "new rules."
However, in my time as a taxman I reached the firm opinion that all Chancellors of the Exchequer have been incredibly effective in using what we now know as "Spin", particularly on Budget Day. I suggest you wait a week or two to see what emerges before making any firm plans.