Capital Gains Tax on Sale of Residential Property
Major changes to the tax regime for gains made on sale of residential property will take effect from April 2020. If a liability arises, you will be required to submit a provisional calculation to HMRC within 30 days of completion. You will also need to pay an estimate of the capital gains tax due.
The 30 day declaration and payment applies whether or not you are within the self assessment system. If you do complete an annual tax return, you will still be required to declare the gain on your tax return. If not within the system, HMRC have advised that you will not need to register for self assessment but instead, after the tax year, you should review the provisional calculation to see if you have paid the capital gains tax at the correct rate i.e. 18% or 28%, and then make any changes required.
Please contact us for further information.