News Flash! Capital Gains Tax Changes Are On The Way!
Second home owners, Landlords and property investors will need to be aware of yet more changes to regulations in the property market with the governments ‘dramatic change’ to the way in which Capital Gains Tax is to be paid.
Under the current regime the deadline for paying any outstanding tax on capital gains made when selling a property is January the 31st following the end of the year in which the sale was made. As of April 6th 2020, where Capital Gains Tax is due, it will have to be paid within 30 days of completion.
This may not sound like a huge change but it could have an impact if you are selling a property with large historic gains and especially if you are looking to finance another purchase with equity from a second home. The change will not affect sales of main or sole residences but will affect buy to let investors, owners of second homes and owners of holiday homes.
If you think the coming changes may affect you then it is best to get professional advice from a tax specialist in order to make sure you are fully prepared for the changes.
If you are unsure about what Capital Gains Tax is and whether or not it might affect you, you can find details of this and other common types of property tax in our previous article ‘What Taxes Are Involved When Buying And Selling Property?‘ or by visiting the .GOV information page.
The change will not affect sales of main or sole residence but will affect buy to let investors and owners of holiday homes.
If you need any advice on the property market, just call your local Hannells branch and talk to one of our property professionals, or just click here and get in touch!