6 Dec 2019

Planning on selling a residential Property?

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There are fundamental reporting and changes to capital gains tax on the way.

What you need to know:

Where exchange of contracts for the sale or gift of a UK residential property takes place on or after 6 April 2020, the tax payment and reporting processes are changing. 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.

One exception to this, is where a sale or gift is fully tax-exempt due to Principal Private Residence relief, although in some cases this is not straightforward, and specific tax advice may be needed to be sure the capital gain is not reportable.

In addition, the 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.