Tax: another tighten of the screw
With effect from 6 April 2014, another tax rule was tightened in H M Revenue & Customs’ favour.
For many years now, the main residence capital gains exemption always included the last 36 months of ownership of the home, even if you had already moved out.
This provided some much needed tax relief in times of a depressed property market.
However on 6 April 2014 the 36 month period was halved to 18 months only. “This is likely to bring many more home owners into the capital gains tax net,” says Victoria Bishop, robinson+co’s Tax Partner, “and it is important that you talk to us if you are leaving your main home before sale.”
There are a couple of relaxations to the new 18 month rules which apply if you are leaving your home to go into a care home for at least 3 months or are classed as disabled under narrow tax rules.
“As, ever, I can only repeat that you should contact us for further advice as required!” advises Victoria.
Victoria can be contacted on 01900 603623 or firstname.lastname@example.org