Simmonds Mortgages

Mortgage Brokers covering Berkshire and beyond

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'Accidental' Landlords Could Face Tax Bill

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'Accidental' Landlords Could Face Tax Bill

 

In early 2019, the government announced plans to curb Private Residence Relief from Capital Gains Tax (CGT) for landlords who once lived in their rental property. Homeowners in these circumstances are often referred to as 'accidental' landlords, because when they originally acquired the property, they didn't intend to let it out. They may be moving in with a partner or struggling to sell it.


Over half a million 'accidental' landlords have until April 2020 to sell, before they could be hit with new tax bills. The rules will take effect from 6th April when the tax relief, known as Principal Private Residence Relief, will be reduced from the existing extension of 18 months to 9 months. When a property that was once a main home is sold, the tax payable is on the amount it goes up in value while it is let out. Currently the owner is allowed to add 18 months to the amount of time they lived at that property; from April 2019 they are only able to add nine months.

Lettings relief is to be scaled back at the same time, meaning that landlords selling their former home after renting it out will no longer be allowed to shelter £40,000 of the fain from CGT (up to £80,000 for couples). From April next year, only landlords who continue to live in the property will qualify for this benefit.

 

We can help you!

 

If you would like more information or help with your mortgage please call us on 01344 225 149 or 07979 690 056. Alternatively please send us an email at info@simmondsmortgage.co.uk

 

Your home may be repossessed if you do not keep up repayments on your mortgage

  

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Simmonds Mortgage Services is an appointed representative of Stonebridge Mortgage Solutions Ltd and can source the most appropriate cover from its panel of insurers with a free review of you overall protection and insurance needs. As with all insurance policies, conditions and exclusions will apply.

What our Customers Say...

Your home may be repossessed if you do not keep up repayments on your mortgage.

Simmonds Mortgage Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.

Registered Office: Simmonds Mortgage Services Ltd, Lexham House, Forest Road, Binfield, Berkshire, RG42 4HP. Registered Company Number: 1152 8784 Registered in England & Wales.

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