Video:

Legislation changes to residential relief

Author: Chris Springett, James Kirk (yBC.tv)

Categories: Tax Planning
Tags: residence
Legislation changes can follow events and scandals that highlight certain issues. In this video Chris Springett discusses the impact on residential relief.

Legislation changes - Act early

You might have heard a few years ago, the MPs as part of the expenses scandal, there was various parts about them flipping properties. Now, that was to make use and maximise this main residence relief. So those thought at the time that there might be an attack on the relief or some kind of restriction as to how it applies, there is an Office of Tax Simplification that looks at all the reliefs and tries to come up with some conclusions about how they should apply. Is there any changes required? They’ve looked at main residence relief, they say they like it as a general relief, what it actually does, but whether it’s going to stay exactly the same is a very different question. There’s some very advantageous parts of the legislation, including an ability to elect for a property. So whether they do decide to make changes on that, it will be interesting to see. That being said, because of that it’s probably worth taking some advice now because it’s very unusual for them to make any retrospective changes to legislation. So, if you’ve got your elections in place already, or if you’ve maximised the relief that’s available and you can evidence that, then you may put yourself in a much better position.

Inside Finance will continue to bring you expert discussion on legislation changes in business and finance.


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