With the world of renting properties ever changing on an almost weekly basis it is priority for you to keep ahead of the law. Here’s a short list coming into effect in 2020.
April – Minimum EPC
Since 2018 landlords have been unable to let their properties to NEW tenants unless their EPC (energy performance certificate) has a minimum rating of E.
However, from April 2020, this will now be extended to all exisiting tenancies. This means it is technically illegal to let your property without this minimum rating of E.
April – Capital Gains Tax
Canges for capital gains tax (CGT) will come into effect this April 2020.
This is the tax you pay on the profit made through the sale of the property that is not your main residence.
Previously you could claim relief on the tax if you have ever lived in the property. However, the changes now affect the timescale for payment and the relief you can claim.
This means you don’t pay tax for the years you lived at the property, plus the last 18 months you owned the property (regardless of whether you lived there or not during this time).
From April this will be abolished – and landlords will only be able to claim lettings relief if they share the property with their tenant.
It will also limit the ‘final exemption period’ from 18 months to nine.
Also, from April, landlords will need to pay the full amount of CGT owed on a sale within 30 days. At the moment they have until the next tax year.
Renting Homes (Wales) Act
This act was actually written in 2016 but has yet to be implemented. There have been serious announcments recently suggesting that this will come in at the end of this year (2020), or the start of next year.
What does this mean? Well, to start, it means tenancies will be converted to standard contracts. A new property fitness standard brought in, and new measures to tackle retaliatory eviction notices.
It has been announced that Secton 173 will replace Section 21. The main changes mean that you cannont issue a Section 173 until at least six months have passed, plus the notice will change from a two month notice period to a six month notice period. This will effectively create 12 month minimum tenancy terms as landlords will not be able to apply to court for possession until twelve months have passed.
Plus, once you have issued the possession notice, you will have two months to implement it. If you fail to issue court preceedings within the two month period you will need to re-issue the notice.
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