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CAPITAL GAINS TAX IS CHANGING

Published 5th March 2019; Updated 21st March 2019

Capital Gains Tax (CGT) can apply whenever you sell an asset.

The UK government has changed the way we handle this. With effect from 6th April 2020 a disposal by a UK resident:

  • MUST be reported to HMRC within 30 days of completion
  • And will be accompanied by a CGT calculation
  • And will be accompanied by a payment


Under the existing rules, a tax liability derived from a disposal on 6th April 2018 would not be payable until 31st January 2020 – some 21 months and three weeks after the event.

Under the new rules, the tax liability derived from a disposal on 6th April 2020 will be payable on or before 5th May 2020.


CHANGES IN THE LAW

The following changes are now law:

  • At present the gain accruing in the last 18 months of ownership is ignored. This is reduced to 9 months.
  • At present, when you sell a property that has been your main residence and has been let, you get an allowance of up to £40,000. The UK government has changed this allowance so that it only covers the gain arising when you had part of the property tenanted and part you occupied yourself.



If you are thinking of disposing of any asset speak to us first!