HMRC has recently announced changes to Capital Gains Tax payment for UK property sales.
HMRC have reminded property owners who are selling a residential property in the UK about important deadline changes when paying Capital Gains Tax.
The deadlines for paying CGT after selling property are changing from 6 April 2020. Property owners should understand the changes and what they need to do.
From 6th April 2020, if a UK resident sells a residential property in this country, they’ll have 30 days to tell HMRC and pay any money they owe. It means that, for some, they can do it without registering for Self-Assessment.
See also https://care4properties.co.uk/
What is Capital Gains Tax?
Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.
New online service and guidance
HMRC will launch a new online service to facilitate the process of reporting and paying any CGT payments.
However, HMRC will provide guidance in April 2020, which will include information on how to access and use the online service.
Owners may need to make a Capital Gains Tax report and make a payment when, for example, they sell or otherwise dispose of:
- a property that they’ve not used as their main home
- a holiday home
- a property which they let out for people to live in
- a property that they’ve inherited and have not used as their main home
But owners won’t have to make a report and make a payment when:
- a legally binding contract for the sale was made before 6 April 2020
- they meet the criteria for full Private Residence Relief
- the sale or disposal was made to a spouse or civil partner
- the gains (including any other chargeable residential property gains in the same tax year) are within their tax-free allowance
- they sold the property for a loss
- the property is outside the UK
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If customers don’t tell HMRC about any Capital Gains Tax within 30 days of completion, they may receive a penalty as well as having to pay interest on what they owe.
So it’s really important that everyone fully understands these changes, which affect both UK and non-UK residents.
Visit also https://careaccountancy.co.uk/tax-news-in-uk/ for details about current tax affairs.