Annual exempt amount
The annual exempt amount for 2019-20 will be as follows:
- £12,000 for individuals and personal representatives; and
- £6,000 for most trustees of a settlement.
Private residence relief
It has been announced that, from April 2020, two changes will be made to the operation of private residence relief.
First, the 18-month final period exemption will be reduced to nine months (although this will not affect the 36-month final period exemption available to the disabled or those in a care home).
Second, lettings relief will be reformed and will only be available where the owner of the property is in shared occupancy with a tenant,
There will be consultation on both the detail of these changes and other technical aspects.
Capital gains tax payment window
As announced at Autumn Budget 2017, draft legislation was published on 6 July 2018 for inclusion in Finance Bill 2018-19 to introduce a requirement for UK residents to make a payment on account of CGT following completion of a residential property disposal and to replace and extend the existing reporting and payment on account rules for non-UK residents.
Following consultation, the legislation has been amended to:
- Allow reasonable estimates of valuations and apportionments for calculation purposes if the information is not available by the payment deadline;
- Remove disposals of non-UK properties from the rules; and
- Remove non-UK resident companies from the reporting requirement.