New Regime
From the 6th April 2020, there are changes to Capital Gains Tax on the sale of properties when such property is NOT your principal place of residence.
From this date, everyone must report and pay Capital Gains Tax (on account) on the sale of such UK residential properties within 30 days of completion of the sale or disposal.
This rule only applies to UK residential properties and only where Capital Gains Tax is chargeable. This does not include properties held by a Limited Company.
The tax is paid via the completion of a new standalone Online Return which is then submitted to HM Revenue and Customs.
Reminder
Individuals will still be able to claim the tax-free capital gains tax annual exemption which is presently £12,000 before any tax is payable.
The gain after this will be taxed at:
· Basic rate taxpayers 18%
· Higher rate taxpayers 28%
Penalties
If you miss the 30 day deadline the following penalties will be charged:
· Up to 6 months - £100
· More than 6 months - Extra £300 or 5% of any tax due, whichever is the greater.
You may be able to claims expenses and allowances against the gain you have made and may need assistance in assessing the value that you are calculating the gain from. If so then you should contact your Accountants as early as possible to provide you with assistance in doing this.