Residential property saleshttps://kaganmoss.co.uk/wp-content/themes/osmosis/images/empty/thumbnail.jpg 150 150 mattd mattd https://secure.gravatar.com/avatar/854e268b6cbf4d6f0c2f99bb0d75cced?s=96&d=mm&r=g
Currently, where an estate is owned or managed by individuals or trustees sells a let property the disposal and any capital gains tax (CGT) payable has to be reported and paid to HMRC by 31 January following the end of the tax year. That can mean the tax may not be due for up to 21 months after the disposal.
From 6 April 2020 this all due to change. If a gain is realised on disposal of a UK residential property after this date, a return and payment on account of CGT is due within 30 days of completion. The payment on account will need to be estimated reliably and so an idea of income levels of the person making the disposal may be required. However, the estimate can take into account brought forward capital losses and any annual exemption available, as well as private residence relief (PRR).
The new rules also cover gifts – for example, where a residential property is gifted to a trust or where a residential property is passed down the generations by way of gift. These transfers trigger the same reporting and payment requirements, although holdover relief may be available to reduce any payment due.