Royal assent was given 26/6/19
A little summary
Ring Fencing - Obtained Royal Assent 26/6/19
Section 51C contains Ring Fencing, and comes into force 1/4/19.
This is a quick update and we will send clients further information now that this rule has been finalised.
Ross
A little summary
Ring Fencing - Obtained Royal Assent 26/6/19
Section 51C contains Ring Fencing, and comes into force 1/4/19.
- Only residential properties
- Can apply on a property by property basis, or portfolio basis
- Losses that are ring fenced carry forward to future years
- Excludes
- Person’s main home
- revenue account properties. i.e not trading properties, specs or developments
- Mixed use assets, as losses already limited under those rules
- Property provided as employee accommodation
- Specific section to catch interest used to borrow to buy shares in property companies
- Can use ring fenced losses to offset Brightline profits.
This is a quick update and we will send clients further information now that this rule has been finalised.
Ross
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