Tax Accountant in Surrey

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Changes to Capital Gains Tax on second properties

Changes to Capital Gains Tax on second properties

At present, when you sell a second property you have some time before the capital gains tax(CGT) is payable.

For example, selling a property in July 2018 would fall into the 2018/19 tax return – the tax would not be payable until 31st January 2020.

However, from April 2020 HMRC is planning to bring in new rules that make the time to pay much shorter… actually making you pay the capital gains tax within 30 days from completion.

This only applies to second properties, as generally people’s main residence is usually exempt from capital gains tax provided they are entitled to full relief.

With the changes to mortgage interest relief on let second properties, as well as stamp duty changes, there are now many disadvantages.

One large issue with in-year reporting of capital gains tax is that you will not know the full position for the year and the applicable tax rates:

– perhaps further capital gains will be made in the year

– perhaps employed or self-employed income will increase before the end of the tax year.

– perhaps a further property will be sold during the year, incurring a loss that could be offset against the first gain.

– or, income could be reduced from initial expectations when submitting the CGT return.

There could therefore be adjustments required to the tax paid – these will only be known at the year-end, so it is important that people complete their tax return as soon as possible after the tax year ends.

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Accountant in Surrey

Are you looking for a personal tax specialist?

I built up my tax experience in industry and practice over 17 years before founding my own practice in 2006.

Based in Cobham, Surrey I can also help clients throughout the UK.

  

My goal is to make personal tax and accounts for the self-employed as easy as possible for clients

 

Award-winning Accountant

Small Business Saturday is the UK's most successful small business campaign. Only one hundred of the UK’s top small businesses are selected each year for the SBS100. They act as trail-blazers in the official count-down towards the annual event.

I was one of the alumni from the 2014 Small Business Saturday 100, resulting in two visits to Downing Street.

In the Surrey Digital Awards from 2015 - 2018, I was also the winner of several top awards.

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