Tax Update – Changes to UK Capital Gains Tax from 6 April 2020
UK Residential Property Sales
A fundamental change to the UK tax system came into play on 6 April 2020.
Historically, Capital Gains Tax (CGT) arising on the sale of UK residential property, was payable after the end of the tax year.
However, from 6 April 2020, any CGT due from sales of residential property must be reported to HMRC within 30 DAYS OF THE COMPLETION DATE and you must PAY the CGT at the same time.
The above only applies to UK residential property. Therefore commercial property, overseas property and other capital disposals will be assessed by for CGT as before.
If there is no gain to report or there is an exemption such as main residence relief, this does not need to be reported to HMRC. It is important to document why no CGT was payable at the time of completion for your tax records.
Contact us at VFDS if you need any assistance or have any questions regarding the above.
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