It was recently announced that HMRC plans
to change the availability period for relief a person received when they own
one or more properties. We thought it would be useful to provide a brief
summary as to what this means.
The current system
When a person owns one or more properties
that have been their main residence, they are entitled to relief on the final
period if they dispose of a property they’re not currently living in. This
relief has been available for a period of 36 months.
The new proposal
HMRC have announced that the availability
period is to be changed from 36 months (3 years), to 18 months as this reduces the incentive for those with more than one property to exploit the rules while still
providing sufficient time to sell a previous residency after moving to a new
one.
This was announced on 5th
December 2013 and will have effect where contracts for the sale of a property
are exchanged on or after 6th April 2014.
The new legislation will be introduced
in the Finance Bill 2014.
In recognition that a person moving into
care may take longer to dispose of their former home, the relief period will
remain at the 36 month period for this group of people.
Summary of Impacts
In the published HMRC document, you can find
information on the impacts that new legislation will have. We’ve included this
directly from their document below:
 |
| Source: Full document here |
Further advice
There are services available at HMRC if you
have any questions or queries about this change. You can contact Tracy Gibble
on 03000 585169 or tracy.gibble@hmrc.gsi.gov.uk.
We at Finnies hope this new information
proves useful for you and are here to help with such matters; do not hesitate
to get in touch.
No comments:
Post a Comment