Several Key Points to be aware of.

1) HMRC, in 2020 has sent 14000 letters to tax payers challenging their Principle Private Residence claims on the house they lived in as their main residence.

Areas of concern: (if you have periods of un-occupation, consult me for tax implications).

• Self-builds - because you cannot occupy the property immediately.
• Off-plan purchases- because you cannot occupy the property immediately.
• Divorce & separation periods before property as sold.

2) STAMP DUTY (SD) holiday ends 30th June 2021 but there is a taper until September.

If you have any concerns on any Stamp Duty call me to discuss e.g. SD during a divorce of property transfers.

3) OVERSEAS CLIENTS - NEW NON-RESIDENCE (NR) SD.

• Many people know, second property and landlords have an extra 3% SD on all purchases in addition to the normal SD.
• There are special rules if you are moving (changing your main residence) and own other property.
• NEW NON-RESIDENT SD OF 2% ON ALL PURCHASES OVER £40,000 ON THE WHOLE AMOUNT.
• IF A NON-RESIDENT PURCHASES A SECOND PROPERTY, THEY WILL HAVE THE EXTRA 2% PLUS THE 3% SECOND PROPERTY SD.
• E.G. A NR person with a UK rental wishes to buy another property for £200,000. they will pay the following SD.
• £200,000 - £125,000 (normal threshold) = £75000 @ 2% = £1500.
• Second property rate £200,000 @ 3% = £6000
• Non-resident rate £200,000 @ 2% = £4000
• TOTAL SD DUE £11500 (1500+6000+4000).

4 ) CAPITAL GAINS TAX (CGT) ON UK RESIDENTIAL PROPERTY SALES

Must be declared to HMRC and pay any tax due (estimated) within 30days of the completion date.

Must be declared on the next tax return as well, e.g. Property sale completion is 15th April 2021, is report again on the 21-22 tax return not the 20-21 tax return as it occured after the 20-21 tax year.

Not applicable to:

• Main residence property with no CGT due.
• Commercial property.
• Foreign property
• Losses where the sale price is less than the original purchase price (or probate value if inherited or market value at the date of the gift if gifted).