New Capital Gains Tax regulations for 2020 for landlords and property investors, new payment deadlines, rules and reporting.
Because capital gains tax on property is currently paid through your self-assessment tax return, it normally doesn’t need to be paid until the following tax year – so a property sale that incurs CGT in the 2019/2020 tax year doesn’t need to be declared and paid until 31 January 2021.
But from April 2020, sellers of any property that is not your main residence will need to pay the full amount owed within 30 days of the completion of the sale and submit a provisional calculation to HMRC. Failure to pay within 30 days will lead to penalties.
There are also changes in principal private residence and lettings reliefs that need to be considered.
Please Contact Us immediately if this legislation affects you.