CGT Changes to PPR rules
There are changes in UK tax legislation that may affect you in the future.
Currently when disposing of a property other than your principal private residence you pay capital gains tax at your marginal rate as part of your annual tax return. This means that you will at a minimum have 10 months to pay the tax owing on the disposal of the property.
New government legislation now states that for sales that complete after 6th April 2020, a new standalone capital gains tax return will be required to be submitted to HMRC within 30 days of sale. Not only that, a payment of capital gains tax will be required at the same time.
The capital gain made on the property will also need to be declared on your personal tax return at the end of the year, although this does not mean you will be double taxed.
Tax legislation is constantly changing, particularly with the current political landscape and the above mentioned changes could again change with the planned 11th March 2020 budget. Rest assured we will ensure we keep you abreast of any changes if we are made aware of any in the coming months.
If you are considering disposing of properties that aren’t your principal private residence in the future we would strongly urge you to consider a brief tax planning exercise to ensure you are aware of the potential tax bill that will be payable. It would also be advisable to gather any documents relating to your purchase of that property to save time if, and when the property is sold. 30 days is not much time to get a return drafted and submitted. Those documents help reduce the capital gains tax payable.
Finally, if you have any further questions on any of the above points please do not hesitate to contact use on 01284 245013 and we would be more than happy to assist you.