Imminent changes to Capital Gains Tax rules on second homes needs highlighting
For those with investments in bricks and mortar, it is worth highlighting that from April 2020, the date at which Capital Gains Tax (CGT) must be paid on a second home is changing.
It is possibly news to you that following next April, taxpayers will only have 30 days to file their return and make an advance payment towards their tax bill.
Until now people have been allowed to pay CGT on the disposal of a property up to 22 months after the sale, but the new rules are very much on the radar, hence the reason for us highlighting them here.
The level of awareness of the changes is low, which research by Revenue and Customs has unearthed.
A recent HMRC report said that those reviewing HMRC’s policy documents had found it “difficult to understand due to long paragraphs containing financial terminology and unfamiliar terms related to CGT”.
“As a result, neither audience felt confident that they had fully understood the policy changes and felt they would need to refer to a professional for clarification,” HMRC concluded.
So, second homeowners, please be aware that this change is on the horizon and if you need help at all regarding any aspects of taxation, we at AIT are happy to have an informal chat. Please get in touch.