Draft Finance Bill 2020 published on 11 July 2019
12 July 2019
These measures have been announced previously, but the key points of interest are:
Principal private residence relief:
The length of the final period of ownership that is always eligible for relief will be reduced from 18 months to 9 months. The final period of ownership of 36 months which is available to qualifying disabled persons and long-term care home residents remains the same.
- Lettings relief will now only apply where the owner of the property is in shared-occupancy with a tenant and where the letting is not in the course of a trade or business.
- There are changes to no loss/no gain treatment for transfers of residences between spouses or civil partners. When an individual transfers an interest in a residential property to their spouse or civil partner, the recipient will be able to take into account their spouse’s or civil partner’s residential use of that property.
Additions to excluded property trusts
In a measure that affects international clients additions of assets by UK domiciled or deemed domiciled individuals to trusts made when they were non-domiciled will be subject to UK inheritance tax and transfers between trusts may be caught in certain circumstances.
If you have any questions on the above please contact one of the team here.