Finance Bill 2019 has introduced some major changes to Capital Gains Tax when it comes to selling your home. From 6 April 2020, UK residents selling residential property in the UK will have 30 days to notify HMRC and pay the Capital Gains Tax owed.
Failure to do so may result in a penalty as well as having to pay interest on what is owed
HMRC will launch a new online service to allow you to report and pay any Capital Gains Tax owed.
That’s not all!
Not only do you now have less time to pay the bill but, the government are also reducing and removing certain reliefs.
The following are the 5 key changes coming in from 5 April 2020:
Must notify HMRC and pay the tax owed within 30 days of the sale taking place
Deemed occupation for the final period reduced from 18 to 9 months. (Disabled people and those living in care homes not affected)
Inter Spouse transfers – the receiving spouse will now inherit the transferring spouse’s ownership history.
Delay in taking up residence (ESCD49) will be 24 months in all cases
Letting relief only available in situations of shared occupancy with tenant
To read the 5 key changes in more detail, please click HERE. If you have any questions, please call the Elman Wall Tax Team on 0207 600 5667 or email Sandeep Daudia at Sandeep.Daudia@elmanwall.co.uk