Residential property and capital gains tax: changes afoot for non-UK residents and multiple-home owners
By Ian Bradshaw
Capital gains tax (CGT) has found itself in the spotlight in recent weeks, owing to two significant changes to the CGT and residential property landscape. First, the government has moved to limit the final period exemption that allowed those owning more than one residential property to reduce CGT on second homes. Secondly, looking forward, plans to extend the CGT regime to non-UK residents selling UK residential property appear to be going ahead, and are set to be in force from April 2015. We take a look at these reforms in more detail.
If you own a property and it remains your main residence for the entire period of ownership, there will be no CGT payable upon a sale. If you own more than one property, partial CGT relief is available in respect of the periods of time in which the property to be sold was in fact your main residence.
Previously, the final 36 months of ownership before sale were deemed a period of residence, as long as the property had at some time been your main residence. This allowed the individual to move house before selling the property without losing the full benefit of the CGT relief…
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