A tax expert has stepped in to clear up confusion over Capital Gains Tax (CGT).
Recent reports have suggested that 2019-20 is the last year UK residents will have to pay CGT on the sale of properties that are not their main home as part of the self-assessment process.
Owen Kyffin, director of accountancy firm Whitley Stimpson, has confirmed this is not the case and that from 2020-21, taxpayers will still be required to report and pay CGT when it comes to all disposals of property and other assets as part of their annual self-assessment.
What has changed is that from 6 April 2020, there is an additional reporting and payment deadline of 30 days from completion of the sale or gift, for certain categories of property, where a taxable gain has been realised.
Non-UK residents disposing of UK land and property should also report the sale within 30 days, regardless of whether there has been a gain or not.
As a result, taxpayers need to report the proceeds of any sale twice – through their UK property account and as part of their self-assessment tax return.
Owen said:
“HMRC is tightening up the system with the 30-day rule. Previously taxpayers did not have to pay CGT until they submitted their self-assessment return.
“Taxpayers need to be aware of this and should consult their adviser when looking to complete a sale.”
Whitley Stimpson is one of the largest independent accountancy practices in the area with offices in Banbury, Bicester, High Wycombe and Witney. For further information contact: Owen Kyffin on 01295 270200 or email: owenk@whitleystimpson.co.uk