Introducing Gemma Bath, Girlings’ new Head of Residential Property. Gemma looks at important changes to Capital Gains Tax (CGT) effective from 6th April 2020
‘I am delighted to have joined Girlings recently as a partner and also to be working closely with our in-house tax expert to offer a seamless service for those who will be affected by the significant changes to CGT post 6 April. If you are in the process of selling your second property, to benefit from the existing CGT rules, I strongly advise you to consider exchange wherever possible before 5 April 2020.
From 6 April 2020 individuals or trustees disposing of a second home or a rental property (i.e. residential properties that are not your main principal residence, through a sale, a gift or into a trust), will be required to submit a ‘Payment on Account Return’ within 30 days of completion of the sale, notifying HMRC of the gain. They will be required to make a payment on account of the CGT liability within the same timescale. Punitive changes to Principal Private Residence Relief (PPR) and Lettings Relief will also greatly increase the CGT payable. For an illustration see girlings.com/latest/tax-changes-second-property-sales
Working with you on your sale, Girlings also has the in-house expertise to complete the Payment on Account Return and make the necessary payments on your behalf to relieve you of this burden, avoiding any overdue penalties and interest being charged by HMRC.’