• Olga

Residential Property – Significant Tax Changes

You may or may not already be aware of a significant tax change which came into effect from 6th April 2020 which could have a major impact on you if you sell a residential property and make a gain as a result of that sale.

Unless the property has been your only main residence throughout your whole ownership period, you may have to complete a capital gains tax return and pay over any tax due on the gain within 60 days from the sale completion date. If the sale took place pre 27th October 2021, it would reduce the deadline to 30 days. Failure to do so could result in penalties and interest being incurred. In the past, you would have had up to 22 months from the date of sale to calculate the capital gains tax liability, report it to HM Revenue & Customs and pay over the tax. This change of legislation may affect not only individuals but Trusts and even Personal Representatives of Deceased Estates.

What should you do now?

If you are currently going through the process of selling a residential property or are contemplating doing so, please do not hesitate to contact us. We will be delighted to arrange a meeting at a time convenient for you. Likewise if you have friends or family who may be caught by this legislation please provide them with my contact details. We will be happy to help.

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