Crewe and Nantwich homeowners who currently rent out a property they once lived in could be hit with a hefty tax bill when they come to sell it, a local accountants has warned.<\/p>\n
New government legislation due to come in force from April 6 next year could cost an individual \u00a311,200 in extra tax – or double if they are a married couple – when selling a home that was formerly their main residence.<\/p>\n
Peter Rossiter, the new tax manager at Barringtons Chartered Accountants in Nantwich, is urging property owners to be aware of the rule changes and how it could affect them.<\/p>\n
When a homeowner sells a property they have rented out they may have to pay Capital Gains Tax, which is a tax on any profit made from the sale.<\/p>\n
Mr Rossiter, 30, an Aberystwyth University graduate who specialises in corporation tax, personal tax and tax advisory, said: “These are significant changes that will impact on people who currently let out a property that was once their main residence, so it’s vital they are aware of the new legislation.<\/p>\n
“Often this can happen when a new couple, both owning property, decide to live in one and rent out the other.<\/p>\n
“The last thing a property owner wants when selling their home is a substantial tax bill they had no idea about.<\/p>\n
“When the changes come into effect in April individuals could be faced with paying up to \u00a311,200 in extra tax because lettings relief will no longer apply.<\/p>\n
“It’s very important that those people who are currently renting out a property they used to live in and are considering selling it in the near future understand the changes and what it means for them.”<\/p>\n