insideKENT Magazine Issue 97 - April 2020 | Page 154

BUSINESSPROFILE Property Shake Up GEMMA BATH, HEAD OF RESIDENTIAL PROPERTY AT GIRLINGS SOLICITORS LOOKS AT WHY 2020 MAY BE A CHALLENGING YEAR FOR MANY LANDLORDS AND OWNERS OF SECOND PROPERTIES. FOCUSSING FIRST ON THE RISE IN CAPITAL GAINS TAX, GEMMA CONSIDERS SOME OF THE OTHER LEGISLATIVE CHANGES PLANNED FOR LATER ON THIS YEAR. Capital Gains Tax From 6 April 2020 any UK resident selling or gifting an interest in a residential property that gives rise to a taxable gain will be required to submit a ‘Payment on Account Return’ within 30 days of completion of the disposal, notifying HMRC of any capital gain. They will also be r equired to make a pa yment on account of the CGT liability within the same timescale, or incur penalties and inter est charges. Changes to Principal Private Residence Relief (PPR) and Lettings Relief will also g reatly increase the CGT payable. This is a big change and at Girlings we are fortunate, when working with clients on the sale of a second property, to have an in-house tax e xpert who can complete the Payment on Account Return and make the necessary payments to HMRC. This relieves our clients of this b urden, a voiding an y o verdue penalties and interest being charged by HMRC. on its Energy Performance Certificate (EPC). From A pril 2020, Minim um Ener gy Ef ficiency Standards (MEES) will be e xtended to co ver all existing tenancies. This means it will be illeg al for landlords to let properties which have F or G ratings. Tenant Fees Act The Tenant Fees Act came into force in England in June 2019. From June 2020 this will be extended to cover all existing tenancies. This means landlords and letting agents cannot c harge fees other than rent, de posits, holding de posits and c harges f or defaulting on the contract – with additional restrictions on how much tenants must pay. Electrical Safety of the Housing Act 1988, giving tenants more security through the abolition of ‘no fault’ evictions, as well as reforming grounds for possession. Gemma is a conveyancing expert specialising in the acquisition and disposal of property. She also has considerable experience dealing with complex and high net worth conveyancing transactions such as country houses and pr operties on priv ate estates - including purchases up to £10,500,000.00. If you are affected by the changes to Capital Gains Tax or need advice on buying and selling residential property, ask the expert and contact Gemma. Gemma Bath, Head of Residential Property, T. 01233 664711 E. [email protected] During 2020, rules f orcing landlords to car ry out regular electrical safety c hecks are expected to be introduced. MINIMUM ENERGY EFFICIENCY STANDARDS (MEES) Section 21 Since 2018, landlords have been unable to let their property to new tenants unless it has a minim um energy efficiency rating of an E (unless exempted) 154 A new Renter’s Reform Bill is to be intr oduced to protect tenants. The Bill would remove Section 21 girlings.com