Taxation is regularly discussed in London property circles as it affects sellers, buyers, owner-occupiers and landlords.
Stamp Duty Land Tax (SDLT) and the Annual Tax on Enveloped Dwellings (ATED) have made most of the headlines in recent years but over the next 18 months we anticipate the changes to Capital Gains Tax (CGT) will be most talked about.
Anyone selling their main home qualifies for private residence relief which means they pay no CGT. Those who rent out their main home for a period before selling it, or have bought a second home before selling their main residence, currently have 18 months before they have to pay CGT, but this is due to be reduced to 9 months in April 2020.
These changes to the CGT rules will no doubt catch some unaware and in central London where values are high this could be an expensive oversight.