Letting Relief scrapped.

Phil4432

Going from this article, letting relief is to be scrapped this year.

https://www.rrlcornwall.co.uk/articles/tax-blog/how-will-letting-relief-changes-affect-landlords/

Am I correct in saying, that if you have owned a property for 10 years and rented it (without living in it for the period of tenancy) for one year of that time, as from April you will be charged CGT on any capital gains resulting from the sale of the property?

00ec25

my you are behind the curve - that was announced ages ago

yes, 1/10 of the ownership period was for business use

now go and read the article properly so you understand the deemed occupancy rule and how you actually calculate private residence relief and therefore what, if anything, is not covered by PRR and your exempt allowance.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/790479/CGT_PRR_changes_to_ancillary_reliefs.pdf.

AdrianC

00ec25 wrote: »

my you are behind the curve - that was announced ages ago

The article posted is dated March 2019.

Slithery

Yes, but the upcoming changes were first announced in the 2018 budget.

Phil4432

00ec25 wrote: »

my you are behind the curve - that was announced ages ago

yes, 1/10 of the ownership period was for business use

now go and read the article properly so you understand the deemed occupancy rule and how you actually calculate private residence relief and therefore what, if anything, is not covered by PRR and your exempt allowance.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/790479/CGT_PRR_changes_to_ancillary_reliefs.pdf.

Perhaps you could write with basic manners, capital letters and commas?

Phil4432

Slithery wrote: »

Yes, but the upcoming changes were first announced in the 2018 budget.

Recently considering renting, hence the question. Wasn't considering in 2018, which is why I didn't research the subject then.

00ec25

Phil4432 wrote: »

Perhaps you could write with basic manners, capital letters and commas?

why? You are not a paying client so my advice does not have to in pretty words when i'm giving of my time and knowledge for free COMMA it simply needs to steer you to the gaps in your knowledge COMMA which is what it did

Crashy_Time

Phil4432 wrote: »

Recently considering renting, hence the question. Wasn't considering in 2018, which is why I didn't research the subject then.

Many people won`t be fully aware, but the topic seems to annoy quite a few posters on here it seems?

Crashy_Time

csgohan4 wrote: »

Perhaps if they searched on Google or the HMRC website before coming here, it would annoy less people.

Ignorance is not an excuse when it comes to tax which the HMRC takes a dim view on.

Now if there items on the stuff you read which you didn't understand, perhaps some would be more forgiving. But expecting to be spoon fed does annoy some people I guess

Now Op have you also considered the legal and tax implications other than CGT for renting as well? Those are equally if not more important if you want to rent and setting up your business.

MSE probably pops up in their searches.... I meant more that the resident landlords are annoyed though...

Phil4432

Crashy_Time wrote: »

Many people won`t be fully aware, but the topic seems to annoy quite a few posters on here it seems?

Thanks Crashy, this isn't the most forgiving forum and it seems that you can't ask questions without attracting trolls. Who don't actually know the answers to said questions.

It seems that CGT in this instance will be retroactive from what I've read. What I'm trying to determine is how far back. For example, if a property has been owned for 40 years and rented for 1 year, would the new rules means full CGT on the whole 40 years of ownership.

fimacdoodle

seems a fair and sensible question to me Phil !