Changes to Capital Gains Tax
The government have introduced changes to the way that Capital Gains Tax for residential properties is reported and paid with effect from 6th April 2020. These changes mean that when you sell a residential property in the UK that results in a Capital Gains Tax liability you will have 30 days from completion of the sale to tell HMRC and to pay any Capital Gains Tax that is owed.
If you fail to tell HMRC about any Capital Gains Tax within 30 days, you may be sent a penalty and have to pay interest on the amount that you owe.
There have also been some changes to the availability of Capital Gains Tax reliefs, which also came into effect from 6th April 2020:
- If you have lived in the property and are eligible to claim principal private residence relief, the deemed occupation period at the end of ownership has shortened from 18 months to 9 months.
- Letting relief will be restricted only to those who share occupation of their house with tenants, therefore removing any letting relief available for the majority of disposals.
If you have any questions or would like us to calculate your capital gains tax please do not hesitate to contact us.
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The word accounting comes from the word accountability. If you are going to be rich, you need to be accountable for your money.
Robert Kiyosaki
