In April 2020, we see a big change in Capital Gains Tax (CGT) on Residential Properties that affect rental properties and second homes, including any property you live in now but was at one time let during your period of ownership.

PREVIOUS PROTOCOL – we declare the property sale on the next tax return.

NEW PROTOCOL – the capital gain is submitted to HMRC within 30days of the completion date along with an estimate of the tax due.

Capital Gains Tax is based on your other income, which may increase or decrease as we go through the year; hence the CGT above it is an estimate.

We will still be required to declare the disposal on the tax return with any over or under tax to be paid or refunded in normal way.

TIP: Keep me informed on any potential property disposals and don’t let any solicitor deal with your submission to HMRC.

NEXT STEP: Once you have informed me of an upcoming disposal, I will email you with further guidance.