From 6 April 2020 the following changes are being introduced in relation to Capital Gains Tax (CGT) on the disposal of UK land and residential property:
• Reporting Deadline – 30 days from the date of completion
• Payment of Capital Gains Tax – 30 days from the date of completion
The changes will apply to individuals and trustees regardless of whether they are resident in the UK for tax purposes or not.
Damain Woodcock of TFO Tax, which is based in Gibraltar and Manchester advised us as follows:
Although the disposal of UK land and residential property from 6 April 2020 will need to be declared to HMRC using a UK Land Return this does not displace the need to declare any such disposals on an individual’s or trustee’s annual Self Assessment Tax Return.
A UK Land Return may not need to be submitted to HMRC where no CGT is payable. However, this is only applicable to individuals and trustees who are resident in the UK for tax purposes, those not resident in the UK will still be required to submit a UK Land Return regardless of whether any CGT is payable.”
There are other changes which apply from 6 April 2020:
• Letting Relief – currently letting relief is available where an individual disposes of a property that at some time during its period of ownership has been their Principal Private Residence (PPR). Until 5 April 2020 letting relief can exempt capital gains up to a maximum of £40,000. From 6 April 2020 letting relief will only be available where the owner of the PPR occupies the property at the same time as the tenant.
• PPR Relief – where an individual disposes of their PPR the last 18 months of ownership is treated as a period of occupation for purposes of PPR Relief. From 6 April 2020 this period will be reduced to the last 9 months of ownership.
The above is only a brief summary of the changes to be imposed from 6 April 2020 so if you should have any queries please do not hesitate to contact Damian Woodcock at TFO Tax or visit the TFO Tax website.
Contributed by Mike Nicholls
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