In our January 2019 edition of Topical Taxes, we explained the ring-fencing of rental losses rules that will be retrospectively enacted from 1 April 2019. We also explained these rules, while venting our frustration at the complexity and effectiveness of the rules at a presentation at the Ascot Park Hotel.
Inland Revenue has actually listened to the many submissions (a more appropriate term may be complaints) and have decided to completely re-write the legislation. The new legislation will be announced in June 2019. While the ultimate intent of the legislation will not change it will be interesting to see what changes will be made. These rules will still apply from 1 April 2019.
We will provide an update on these rules when the updated legislation is released. In the meantime, please give us a call if you wish to discuss these changes.