Mapus-Smith & Lemmon chartered accountants in King's Lynn highlight changes to Capital Gains Tax payment
People selling residential property need to be aware of significant changes in how they make tax payments, say chartered accountants with offices in Lynn.
Mapus-Smith & Lemmon, located in King Street, have highlighted the fact that there is a major change to the deadline to settle Capital Gains Tax (CGT).
HMRC has confirmed that from April 6, 2020, anyone responsible for administering a taxable capital gain from the disposal of a UK residential property – be it from a deceased estate, property portfolio or other – will have to submit a residential property return and make a CGT payment on account within 30 days of completion of the disposal.
Daniel Sanctuary, chartered accountant at the firm which also has offices in Downham and Wisbech, said: “To date, CGT has been payable by the 31st January of the tax year following the year of disposal, which has given a settlement window of anywhere between ten and 22 months after the date of sale.
"Therefore this 30-day ruling will dramatically reduce the time available to prepare calculations and pay CGT. Penalties or deadlines will be charged if the deadline is missed.
“This will not apply to properties covered by Private Residence Relief but, in turn, the rules for PPR are changing significantly too so there are a series of potential adjustments for those involved with property.”
Taxpayers who are within the self-assessment system will still have to report the capital gain on their annual tax return as well as completing the 30-day residential property return.
For further advice Daniel Sanctuary can be contacted on 01553 774761.
Mapus-Smith & Lemmon's services include tax returns and repayments, tax planning, financial planning, advice on automated accounting/Making Tax Digital, cashflows and budgets, VAT returns and accounting and management reporting.
Its client portfolio ranges from sole proprietors to large enterprises operating in numerous different trades and professions.
Clients are located throughout Norfolk, Lincolnshire, Cambridgeshire and London.
More by this authorJulie Graham, Business Editor