2nd Homeowners in NI could be hit by new CGT rules

Changes to the Private Residence Relief (PPR) rules could affect taxpayers in Northern Ireland and the rest of the UK from 6th April 2014.

Private Residence Relief means you pay no Capital Gains Tax (CGT) on your property for the whole time you live there, together with the final three years of ownership. This three-year period applies even if the property is let out or is no longer your main home. However, rule changes announced in December 2013 mean that from 6th April 2014, the final three-year period will be cut to 18 months.

The new rule changes could significantly affect the amount of tax payable on properties which have been owned and lived in for just a few years. Therefore in order to avoid tax on their main residence, homeowners will need to accelerate their decision on whether to sell the property when they move.

Wilson Nesbitt Solicitors based in Belfast, Northern Ireland can assist you with any capital gains tax issues and provide advice to reduce your CGT liability. If you need to talk with one of our tax advisors please contact us by calling 0800 840 9288.