Beware the nine-month capital gains trap
People who are relocating or are stuck in a chain could be caught out by changes to capital gains tax (CGT) which are coming in April . If you have already bought your next home , the new rules will halve the amount of time homeowners have to sell their existing property – from 18 months to nine – before triggering a tax bill.
Also from April, people paying CGT will have just 30 days to calculate the gain via an online tax return and pay the amount. Currently taxpayers had until the self-assessment deadline of 31 January in the tax year after they sold their property to complete a tax return and pay the CGT.
This is a major change for those selling a second home or buy-to-let properties. No longer an annual compliance process, property owners will need to have their records up to date in advance of a sale . It is essential to plan ahead to avoid being hit with penalties. Please speak to our Tax Manager Christine for further information.