10 Mar 2020

CGT Changes from 6 April

202003 MHA Monahans Capital Gains changes

There are major reporting and changes to capital gains tax that take effect from the 6th April 2020

What you need to know:

The tax payment and reporting processes are changing where an exchange of contracts for the sale or gift of a UK residential property takes place on or after 6 April 2020. The transfer will need to be reported to HMRC within 30 days of completion if a tax liability arises, and an estimated capital gains tax payment will also be due by the same date.

If a sale or gift is fully tax-exempt due to Principal Private Residence relief, this is an exception, though in some cases this is not straightforward. Specific tax advice may be needed to be sure the exemption is valid and the capital gain is not reportable.

Capital Gains Tax reliefs, available on selling a property which has been occupied as an only or main residence for part of the period of ownership, are also changing with effect from 6 April 2020. Detailed advice will be needed to ensure the CGT is neither overpaid, nor underpaid.

How we can help:

If you are considering selling UK residential property, please contact us in the early stages of the process, so we can advise on the tax implications and reporting requirements.