As a landlord of residential property there are some important changes that you need to be aware of:
- Renewals basis for unfurnished rental properties – as from April 2013 the tax concession which allowed landlords of unfurnished properties to claim tax relief for the cost of replacing stand-alone white goods and furniture/furnishings in an unfurnished property has been removed. HMRC is monitoring the impact of the change.
- New Capital Gains Tax (CGT) charge on non-residents selling UK property – under current legislation, generally speaking, non-residents are not liable for CGT should they sell residential property situated in the UK (subject to anti-avoidance provisions). The Government has announced that from April 2015, for gains arising from that date, CGT will be charged on non-residents’ gains on UK residential properties. This policy change could also have an impact on UK residents, as there is a proposal to abolish the ‘main residence election’ – that is, the ability to nominate which property is to be treated as the main residence where a taxpayer has more than one ‘home’. The consultation proposes that rather than having the ability to elect which property is to be the main residence, this will be determined by fact.
- Private Residence Relief – the final period of exemption for CGT private residence relief has been reduced from 36 to 18 months (in most cases) as from 6 April 2014. This measure is set to become law later in 2014.
Article Courtesy of http://wardwilliams.co.uk/