Changes to Capital Gains Tax on Property – Are you Affected?

/ Quarterly Updates
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From April of this year, the rules regarding Capital Gains Tax for the disposal of UK residential property are changing. So, it is important that you understand these changes, how they might affect you and discuss this with your accountant if required.

What are the changes?

From 6th April 2020, if you sell a residential property which is not your main residence, this will now have to be reported to HMRC and the tax due must be paid within 30 days of the disposal of the property. (This used to be 1 year). If you complete a self-assessment, then as well as paying the CGT within 30 days, you also need to include it on your self-assessment return.

Anything else?

There are also changes coming in regarding letting relief for anyone who is disposing of their residence (or former residence). These mean that in most cases, letting relief will no longer be available. This also comes in from 6th April, so if you are looking at selling a property and were looking at claiming letting relief, it may be worth discussing with your accountant to see if it is beneficial to exchange on the sale prior to the deadline.

What should you do?

If in doubt, speak to your local AIMS accountant, who can provide you with tax advice, and explain the changes in more detail.