We should all be aware that new Capital Gains Tax [CGT] reporting procedures come into force from 6th April 2020. These procedures will affect those disposing of second homes or rental properties, i.e. residential properties which are not your main principal residence.
The person disposing of the property will be required to submit a “payment on account return” within 30 days of completion of the sale notifying HMRC of the gain. They will also be required to make a payment on account of the CGT within the same timescale. Therefore, when selling a relevant property for a gain on the 7th April 2020, this would previously require to have been included on a personal tax return due to be submitted by 31st January 2022 with the tax payable by the same date. Under the new rules, a payment on account return must be submitted by 6th May 2020 with the tax payable on the same date. People selling relevant properties are advised to contact their tax advisers in advance of the transaction completing in order to establish the tax payable and to make arrangements to submit the return and the payment within the required timescales.
At Drummond Laurie we try to keep our clients informed so that they can plan ahead and have no surprises! For more information please contact us via email firstname.lastname@example.org or call us on 01324 441250.