CIOT warns of 'seismic shift' in CGT rules

29 Jan 2020

Residential property sellers with taxable gains must beware major changes to the capital gains tax (CGT) rules, the Chartered Institute of Taxation (CIOT) has warned.

New rules which are due to be introduced on 6 April this year mean those liable for CGT must send a new standalone online return to HMRC and settle the tax due within 30 days of completion of the sale.

The current rules allow taxpayers until the self assessment tax deadline of 31 January after the tax year in which the disposal is made to complete a tax return and pay the CGT.

Depending on the timing of the sale, sellers currently have between ten and 22 months to settle outstanding CGT. Under the new rules, the new 30-day deadline means individuals have less time to calculate CGT, report the gain and pay the tax.

Commenting on the changes, John Bunker, Chair of the CIOT's Private Client UK committee, said: 'This is a seismic change for property owners with taxable gains on their residential properties.

'Rather than thinking about an annual compliance process, property owners need to have their records up to date in advance of the sale so that the 30-day deadline can be met, and penalty charges avoided.

'Make sure that full property details are all readily to hand, including the date when the property was acquired, the acquisition cost and details of any improvements made over the period of ownership. In some cases, professional valuations may be needed.'

Have we convinced you yet?

Please feel free to get in touch via phone, email or our quick contact form.

We offer initial free consultations – simply contact us to find out more.


ICAEW Chartered Accountants logo Sage logo chichester chamber of commerce and industry logo
Copyright

© 2020 James Todd & Co. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact us

Please call:
01243 776938
Lavant and Chichester
01273 470123
Lewes

Address
James Todd & Co, 1/2 The Barn, Oldwick, West Stoke Road, Chichester PO18 9AA
James Todd & Co, 16 Northgate, Chichester PO19 1BJ
James Todd & Co, The Mews, St Nicholas Lane, Lewes, East Sussex BN7 2JZ

James Todd & Co is the trading name of James Todd & Co Limited. Chartered Accountants and Registered Auditors. Registered No: 07350649 in England. VAT No. 322087875. ICAEW Firm Reference No: C002730145 and James Todd & Co (Lewes) Ltd (formerly known as Axtons). Chartered Accountants. Registered No: 11214467 in England. VAT No. 290460506. ICAEW Firm Reference No: C005791297

Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details of our audit registration can be viewed at www.auditregister.org.uk

Details of our Designated Professional Body (DPB) activities can be viewed at register.fca.org.uk. A member of the ICAEW Practice Assurance Scheme.