Don’t get caught out by Capital Gains Tax changes

/ Property, Tax

Author: Joshua Ejdelbaum

Tags: Capital Gains Tax, property, Tax

The Government brought in a new legislation starting on 6 April 2020 where UK resident taxpayers selling UK residential property after 5 April 2020 now face new filing and payment obligations.

As a result, they may be liable to pay Capital Gains Tax.

This will have an impact on properties other than one which has been your main residence all the time that you have owned it. The new legislation set up by the Government applies to trusts and individuals but not yet to businesses.

For capital gains incurred from 6 April 2020, you must make an online return and pay the estimated tax within 30 days of completing the sale. Make sure you don’t get caught out as failure to do so within 30 days of completion will result in penalties.

Paying the estimated Capital Gains Tax will be treated like a payment on account until processed on the self-assessment tax return and the tax year the gains fall into will be reassessed there too. Therefore, a refund or additional tax may be payable with interest being charged at HMRC’s standard rates set.

Speak to your local accountant for more information.