Capital Gains Tax – What Is It And How Might it Affect You?
Capital Gains Tax (‘CGT’) is a tax on the profit when you sell an asset that’s increased in value.
From 6 April 2020, where Capital Gains Tax is due on the disposal of UK residential property by a UK resident individual or trustees, a new standalone online return will need to be filed with HMRC, together with a payment on account of CGT, within 30 days of the date of completion. The new regime will not apply where contracts are exchanged on or before on or after 6 April 2020. No return is needed where no CGT liability arises, e.g. gain covered by main residence relief, sold at a loss, gain(s) fall within annual CGT exemption.
Penalties and interest will apply if these new deadlines are not met so it will be important that the CGT position is properly considered at an early stage.
Should you require assistance in calculating your CGT liability and filing the online CGT return, please contact me or another member of the Thomas Westcott Team.
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