New 30 Day Capital Gains Tax Rules – What Do You Need To Know?
In an ever changing world, it is hard to keep up with everything. That is why our clients turn to us to make sure that they are keeping up to date with the changing tax rules to ensure they comply with the latest guidance while they concentrate on other things.
Below is a quick update on a new change relating to Capital Gains Tax but feel free to contact us at McDade Roberts if you are not sure how it will impact you.
What You Need To Know
From 06 April 2020, if you are a UK resident and sell a residential property in the UK you will have 30 days to tell HMRC and pay any Capital Gains Tax owed.
This includes residential investment properties and also situations where the sale of the person's home is not fully covered by Principal Private Residence Relief.
You may need to make a Capital Gains Tax report and make a payment within 30 days of completion when, for example, you sell or otherwise dispose of:
- a property that you have not used as your main home
- a holiday home
- a property which you let out for people to live in
- a property that you have inherited and have not used as your main home
You will not need to make a report and payment when:
- a legally binding contract for the sale was made before the 06 April 2020
- you meet the criteria for Principal Private Residence Relief
- the sale was made to a spouse or civil partner
- the gains are within your tax free allowance (annual exemption)
- you sold the property at a loss
- the property is outside the UK
If you do not tell HMRC about any Capital Gains Tax within 30 days of completion, you may be sent a penalty as well as having to pay interest on what you owe.
At McDade Roberts we are here to help you with all your tax compliance requirements. If you are a client, please tell us well in advance of selling a property that may be affected by these new rules so that we can ensure you will be reporting the correct information at the correct time to HMRC. If you are not already a client but would like to be supported by our team to ensure that you know what you need to, give us a call. The first chat is always free so you have nothing to lose. Contact Us