16 August 2019
Not only are the reliefs on private residences and buy to lets being slowly eroded (restrictions to final period exemption for private residences and lettings relief for the former and restrictions on the deduction of interest payments on the latter) but, from 6th April 2020, we will have to pay whatever capital gains tax (CGT) is due within 30 days of the date of completion on the sale of most residential properties.
In a move originally put forward by George Osborne, taxpayers will soon have to submit a return to HMRC and make a payment of the CGT within the 30 day period. Calculating the tax is not always straightforward, especially where the property has been a main residence for only part of the period of ownership, and so it will be important to gather all of the information required to consider this as soon as a sale is contemplated.
The gain will still need to go on the annual tax return where other gains and/or losses may result in more CGT due or a repayment due. But if you make a gain first and then a loss there may be some considerable delay in getting your money back!