Blog Post
Changes to Capital Gains Tax
Mar 11, 2020
Don’t get caught out: Changes to Capital Gains Tax – UK Residential Property
From 6th April 2020, if you’re UK resident and sell a residential property in the UK, you’ll have 30 days to report any gains to HMRC and pay any Capital Gains Tax due.
Capital Gains Tax is calculated on the profit made when you sell your residential property, this will be chargeable at the higher rates of 18% and 28% depending on whether you are a basic or higher / additional rate tax payer.
What needs reporting?
You will need to report your disposal to HMRC if you dispose of:
- A property that you’ve not used as your main home
- A holiday home
- A property which has been let out
- A property you have inherited and not used as your main home
What doesn’t need reporting?
You won’t be required to report the following disposals:
- A sale made before the 6th April 2020 (This will be due by the normal Self-Assessment deadline)
- A property that has been your main home for the duration of ownership and qualifies for Private Residence Relief
- A gain that falls within your Annual Exemption Allowance (£12,000 – 2019/20)
- A property that was sold at a loss
- A property that is outside the UK
How will my gain be reported?
HMRC will be launching a new online service which will allow tax payers / agents to report and pay any Capital Gains Tax due.
It’s important that your gains are reported within the 30 day window as HMRC may send you a penalty as well as charge interest on the tax due.
If you need any assistance calculating and reporting your gain to HMRC, please get in touch.
In the dynamic landscape of today's workforce, companies strive to attract and retain top talent. One innovative strategy gaining popularity in the UK is the Employee Management Incentive (EMI) scheme. This scheme not only serves as a powerful tool for employee retention but also fosters a sense of shared ownership and commitment.
The unveiling of the Autumn Statement by Chancellor Jeremy Hunt, accompanied by an updated economic forecast from the Office for Budget Responsibility, has laid out the trajectory for the UK's economic policies. Let's delve into the key announcements that will shape the fiscal landscape in the coming years.
Recent developments in the United Kingdom have ushered in substantial changes to the way small businesses report their financial information. With the enactment of the Economic Crime and Corporate Transparency Act, small enterprises, including micro-entities, are now mandated to submit a profit and loss account to Companies House. This development has sparked a diversity of opinions within the business community.
