Case Study – reducing Capital Gains Tax for an accidental landlord

On behalf of our client, who had sold her own home on marriage, we advised on capital gains liabilities (resulting before 6 April 2020) and undertook related Self Assessment tax returns on our client’s behalf.

After moving out of her own home upon marriage, our client kept hold of this property as an investment, renting it out for several years before deciding to dispose of it.

Concerned of a considerable Capital Gains Tax bill upon disposing of the property, we were able to apply relief for Principal Private Residence, as well as Lettings Relief, removing any Capital Gains Tax liability.

Our client was initially faced with a Capital Gains Tax bill, which could have been more than £50,000. Following careful planning on when to dispose of the property, and our considered advice, which fully utilised all available reliefs and exemptions, we were able to reduce the capital gains tax liability to Zero.