Capital gains tax relief of up to £40,000 (£80,00 per couple) is available if a Landlord sells their UK residential property which at some point was their main residence. but has been rented out at some point.

Lettings relief will only be available for those Landlords living in the property at the same time as renting it out. This applies to all disposals made after 6 April 2020.

The final period exemption currently means any gains attributable to the last 18 months of ownership are exempt from tax.

The relief will only apply to the last 9 months of ownership of the property.

Any gains on the disposal of UK residential Property by a UK resident taxpayer are reported on the individual’s personal tax return and any liability is payable 31 January following the end of tax year in which the gain arose.

When a UK resident taxpayer disposes of a UK residential Property the liability must be reported and paid within 30 days of the completion date using HMRC’s online services account.
The gains will also be required to be disclosed on the individuals personal tax return and any under or over payment of tax will be dealt with then.