Changes are being made to Capital Gains Tax and the way it's reported. We're here to make sure you have everything you need when selling your house.
From 6 April 2020, there's a major change to the way taxpayers report capital gains, and pay their capital gains tax (CGT) on UK residential property:
- You need to file a CGT return online within 30 days of the completion date, and make a payment on account of the tax due at the same time
- The disposal must still be included in your annual self-assessment tax return with a credit given for any tax paid on account.
Remember that CGT applies to all disposals of property, not only when selling to third parties. You should also report gains on gifts to individuals or trusts, and gains on trust or estate disposals.
For most people selling UK residential property, relief from CGT is available in the form of Principal Private Residence Relief.
When a house has always been your main and only place of residence, there's usually no additional need to file a return.
However, there are still many cases where a return and tax payment are needed:
- The house has been let throughout your ownership
- The house has substantial land attached to it. The house itself may be free from CGT, but the land might not be
- The house is a second property or a holiday home
- The house has been used wholly or partly for business, such as a hairdressing salon or yoga studio attached to the main home
- The house has been unoccupied, or let for a portion of your ownership
- The house is occupied by a family member.
If you've owned property over a significant period of time, getting all the information you need together, so you can prepare what could be a complex calculation, can be time consuming and stressful. You'll need your original purchase details and acquisition costs, capital expenditure, and dates of occupation. This can take time to get together, so we recommend you start gathering this information as soon as possible.
Tax law is complicated and often changes, so it can be a challenge to stay on top of your various tax obligations. Everyone's personal situation is different, and so are their taxes. Our expert team of tax advisors can help you – with a deep knowledge of tax returns and calculations, and vast experience in this field, we're perfectly placed to help you, whatever your circumstances.