Significant changes to the reporting and payment of Capital Gains Tax on residential property were introduced with effect from 6 April 2020. The new rules apply to all UK residents, individuals, trustees, personal representatives, partners of a partnership or LLP and joint owners of property.
- Residential property disposals must be reported and any tax arising, calculated and paid within 30 days of completion.
- Disposals covered by the only or main residence exemption do not have to be reported.
- Separate returns are required for each property unless sale is completed on the same day.
- A new system for administration and collection of tax via online reporting is now active.
- Penalties are applied for late returns.
- The final period of private residence exemption on properties not fully occupied during ownership has reduced from 18 months to 9 months which could result in more taxpayers falling into the new CGT reporting regime.
- For residential property previously used as private residence and subsequently let, the relief for the letting period, is abolished from 5 April 2020.
- The changes may be particularly relevant to divorcing or separating couples with joint properties.
We have a dedicated Private Client team who can assist in the calculations required to quantify CGT payable. We can also assist with completion of the online reporting requirements.
For more information please contact email@example.com or your usual Fiander Tovell contact.