claim up to £40,000 in lettings relief when a property is sold, covering the period when the property was rented out. This is potentially worth £11,200 in saved tax. However, from April 2020 only owners who remain in the property while it is rented out will receive the tax break. The Treasury estimates that landlords will pay £150m in extra tax each year by 2023-24 as a result. A connected change affects “principal private residence” relief and will also penalise landlords and separating couples from 2020. At present, the last 18 months of property ownership are exempt for CGT purposes, regardless of whether the owner was living in the property at the time of sale. The exemption period will be cut to nine months. Neil Lancaster of Blick Rothenberg, an accountancy firm, said this change would pose a problem for separating or divorcing couples whose former family home was being sold. The sale could now be liable for CGT if the home remained unsold after nine months, he warned. “For many people nine months is not enough time to sell a property. This will lead to unnecessary complications when calculating the capital gains on the disposal of property,” he said.