From the year starting 6 April 2020, if you sell a residential property in the UK and you are UK resident, you could be caught under new HMRC capital gains tax rules.
The sale of residential property now triggers an automatic requirement to submit a residential property capital gains tax return within 30 days of completion.
A contribution to the capital gains tax will need to be paid within 30 days.
You will need a Government Gateway account to complete this return yourself.
Alternatively we can submit a return on your behalf, saving you both unnecessary stress and the administrative burden.
However, there are exceptions to the rule, and therefore it is critical to let us know immediately when you have made a property disposal.
It is likely that your property conveyancer or solicitor is not equipped with your individual capital gains history.
As your Accountants we are better placed to advise on such matters.
It is also worth noting that if your exchange of contracts falls between 6 March and 5 April, a payment extension to 31 January could be granted, simply by completing your personal tax return 30 days prior to completion.
You can read more about it here;
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax
If you are concerned about the changes in the tax treatment, or tax on your property sale, please get your conveyancer to contact us prior to completion.
Higson & Co
