THE UPCOMING CHANGE WILL ONLY AFFECT THOSE OWNERS WHO HAVE LIVED IN THE RENTAL PROPERTY AT SOME POINT. The advice below is irrelevant if you have never lived in your rental property.

You may be aware that any property that you have occupied, will qualify for partial exemption based on the level of time you occupied the property, on a prorate basis; known as Principle Private Residence (PPR).

Lesser known is the Letting Exemption that is contingent on PPR and is formula based on the lower of 3-figures. This exemption is worth up to £40,000 off the existing gain, so potentially can save £11000+ tax, if you are a higher rate tax payer.

This letting exemption is being removed with effect from 6th April 2020.

If your property gain is less than the annual CGT exemption of £12000 - this will have no impact.

If you are selling the property for less than you bought it for (a loss) - this will have no impact.

If you have any concerns, please contact me immediately. I already have a few clients who are aiming to sell properties before April 2020.