{"id":938,"date":"2019-10-15T16:17:14","date_gmt":"2019-10-15T15:17:14","guid":{"rendered":"http:\/\/www.withcreative.co.uk\/dev\/tax-changes-affecting-residential-landlords-and-second-home-owners\/"},"modified":"2021-01-14T23:29:59","modified_gmt":"2021-01-14T23:29:59","slug":"tax-changes-affecting-residential-landlords-and-second-home-owners","status":"publish","type":"post","link":"https:\/\/dev.withcreative.co.uk\/langricks\/tax-changes-affecting-residential-landlords-and-second-home-owners\/","title":{"rendered":"TAX CHANGES AFFECTING RESIDENTIAL LANDLORDS AND SECOND HOME OWNERS"},"content":{"rendered":"
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Major changes to the tax regime for gains made from the sale of residential property will take effect from April 2020. They will affect how and when you are\u00a0required to report and pay capital gains tax, this change will mainly be relevant to residential landlords and second home owners.<\/header>\n

Current CGT deadlines<\/strong>
\nCurrently, capital gains made by individuals are reported through self-assessment. This means, for example, if you sell a property between 6 April 2019 and 5 April 2020 you must declare it on your tax return and pay the tax you owe no later than 31 January 2021. New rules will apply for 2020\/21 onwards meaning that the tax payable on certain types of gain will be due up to 21 months sooner. A recent report from HMRC shows that taxpayers likely to be affected by the new rules are not properly aware of the changes.<\/p>\n

Earlier deadlines<\/strong>
\nThe new rules apply where tax is payable on\u00a0gains made from the sale of residential property located inside or outside the UK on or after 6 April 2020. You will\u00a0have just 30 days following completion to submit a provisional calculation of the gain and pay the tax you estimate is due.<\/strong> You will\u00a0still be required to declare the gain on your self-assessment tax returns and pay, by the usual self-assessment deadline, any CGT due over and above your provisional payment.<\/p>\n

The 30-day declaration and payment applies whether or not you are\u00a0in the self-assessment system. If you are not\u00a0HMRC says it will not require you to register for self-assessment just because you have\u00a0made a capital gain. Instead, after the tax year in which you made a gain ends you will\u00a0be required to review your provisional calculation and make any changes needed.<\/p>\n

Estimating your CGT<\/strong>
\nTo work out your provisional CGT bill you will\u00a0need to estimate your taxable income for the year to determine how much CGT is payable at 18% and how much at 28%.<\/p>\n

How we can help:<\/strong><\/p>\n