An overhaul of property residence relief rules could quite likely hit smaller landlords with much higher capital gains tax bills when they sell their property than previously.
At the present moment, you can claim up to £40,000 in capital gains tax relief if you sell a property that is your main home or has been your main home.
From April 3rd onwards this loophole will be closed & landlords will now need to be living in the property either as the sole occupant or shared occupancy in order to claim the relief. Payment deadlines tighten on CGT returns
Coming into effect on the 6th April 2020, changes to the governing rules of how CGT is applied come into full force, this applies to the sale or disposal of properties other than the landlord’s main residence.
The new laws mean that landlords will now have to contend with added compliance as a result of a new 30-day deadline to pay the CTG on additional property sales, at present landlords pay the CGT on their tax return this is to be changed completely and should boost the chancellors coffers, it’s worth nothing that failing to pay the CGT within 30 days will leave to penalties imposed by the government.