A harsher Capital Gains Tax regime from April 2020? What is it?

Written by yasiradnan94
7 March 2019

From April 2020 there is more bad news afoot for landlords, as if there hasn’t been enough already in the past few years.


Investors in residential buy to let property who sell for a capital gain will need to make a payment on account towards the total Capital Gains Tax bill within 30 days of sale (from completion). This will naturally have a severe impact on cash-flow.

Current regime

Currently capital gains under self-assessment is not due till the 31st January following the end of the tax year. So a gain made on disposal on 18th February 2019 (18/19 tax year) would not be due till 31st January 2020. In some cases this means there can be a gap of almost 22 months from sale to payment of tax.

Whilst this is generous, there is practicability involved in the reasons for this. Often CGT is triggered on exchange of contracts, meaning there is often a considerable length of time between the exchange date and the seller receiving funds. Also, CGT may also be due when no proceeds are due, i.e. where a property is gifted or sold at undervalue.

Working out tax due

As a result of the above changes it is important to ensure your capital gains tax liability is calculated within a much shorter timeframe to be able to pay the payment on account. The calculation of capital gains can often be a time consuming process, especially where the property was purchased a long time ago and associated documents need to be traced or found!

Are SPVs effected?

UK resident companies are not yet subject to this regime.


AJN Accountants are specialists in helping contractors, freelancers and small businesses to save tax and time.

Please contact us for more information:

E: [email protected]
T: 020 3866 8951

twitter
Follow AJN Accountants on Twitter for regular updates.

Crypto investors urged to declare gains

HMRC has reminded investors in cryptoassets that they should declare any income or gains above the tax-free allowance on a tax return.

VAT Fraud & The Risks to Your Business

In the world of VAT, a business can be unaware of a fraud in the supply chain and still be regarded as a fraudster.

Holiday Pay Changes

If you engage part time workers, or staff who work irregular hours, on permanent contracts you need to be aware of new rules.

Related Posts

VAT on energy saving materials

VAT on energy saving materials

The zero rate of VAT has been extended to include the installation of additional energy-saving materials (ESMs) from 1 February 2024.

Making Tax Digital: quarterly update returns

Making Tax Digital: quarterly update returns

HMRC has confirmed the mandation dates for making tax digital for income tax self assessment (MTD SA) as announced in the Autumn Statement 2023. From April 2026, taxpayers subject to income tax on their trade, profession, property income or business and who have...

We use contact information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For information, check out our Privacy Policy.