Ladybird Living – Your London Estate Agent
Letting Relief Changes and PRR relief
You will receive Private Residence Relief (PRR) in which you do not have to pay Capital Gains Tax when selling your property if:
- you have one home, and it has been your primary residence since you have owned it
- you have not let part of it out
- you are not using part of your home for business purposes
- the grounds are less than 5,000 square metres
- you did not buy it just to make a gain
Letting relief changes:
The letting relief changes will apply if the property was occupied as the primary residence and the property has been let, but the amount of relief provided is the lower of:
- The gain that is attributable to the let period;
- The total amount of the gain subject to private residence relief; and
- £40,000
Letting relief – proposed changes
As a result of the reform, there will be limited access to the letting relief and it will prioritise individuals who share the occupation of their home with a tenant. This means that property owners who no longer share the property with the tenant will not qualify for the letting relief.
The Letting Relief changes were introduced from 6 April 2020.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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