Tea-Break Read - Changes to Capital Gains Tax
- AuthorBen Cresswell
Capital Gains Tax (CGT) is a levy on the profit when you dispose of an asset that has increased in value. Therefore it is not a tax on the money you receive for an asset, but the tax on the profit alone. The deadline for paying CGT after selling a residential property in the UK changed on 6 April 2020.
Subsequently where CGT is due, the individual disposing of the property must pay within 30 days from completion. This deadline must be adhered to, otherwise HMRC can issue penalty notices. Also, it is important to note that this change affects UK and non-UK residents. For those of you with property portfolios, there is a facility to set up an Account Manager through the Gov.Uk website to ensure you are always on top of any changes to CGT.
Full guidance as to when CGT is applicable to a transaction and how this can be processed can be found here.
As a result of the change in deadline, this reflects the importance as to why the guidance should be adhered to so individuals are not penalised for not complying with the rules.
In addition to this, by the Government making this information widely available and easily accessible, this leaves little recourse should CGT rules not be followed.
It is important to note that these changes only affect those who have second properties.
Should you require advice around CGT, please contact JCP Solicitors here or by calling one of our local office numbers below. Our legal experts would be happy to assist.