Selling Second Residential Property & CGT
Posted on 25th February 2020 at 14:57
Important change to the timing of the collection of CGT
If you considering selling a residential property that is a second property, perhaps a holiday home or a buy to let property, then you need to be aware imminent changes to the way capital gains tax (CGT) is charged.
At present CGT is payable the 31st January following the end of the tax year in which exchange of contract takes place.
From 6th April 2020 this will change and the tax will be payable to HMRC 30 days after completion of sale.
Failure to comply wth both the payment and filing a separate return will result in penalties.
Your conveyancer will not be responsible for settling your tax account, so you should consult your accountant in advance of the pending sale and take their advice on this matter.
Tagged as: #CGT, #Secondresidence. #HMRC
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