Most people are aware that the sale of their own home is exempt from Capital Gains Tax.
In technical terms, this is known as the "Principal Private Residence" exemption. What is less well known is just how far principal private residence relief can extend, especially when combined with other available exemptions and reliefs.
The principal private residence exemption covers the period during which the property was your main residence PLUS your last 18 months of ownership.
Tax planning opportunities arise when more than one house is owned.
Any property that qualifies as your only or main residence at any time during your period of ownership and which you have, at some time, let out as private residential accommodation, will qualify for private letting relief.
These reliefs are invaluable to both those with a former home they now wish to sell and those who wish to plan for future TAX-FREE capital growth.
Here at Elite Financial Accounting we understand that every client is different and actively monitor the HMRC taxation regulations within the property sector to make sure we come up with the very best strategic plan tailored to you moving forward.