Practical points 2018 - Property tax
- Publish date: 16 January 2018
- Archived on: 01 January 2019
Guidance from ICAEW's Tax Faculty for practitioners on the latest developments in practice, policy and legislation related to property tax, including: annual tax on enveloped dwellings (ATED); business rates; capital gains tax relief; and stamp duty land tax. These brief practical points are published each month in the faculty's magazine TAXline.
Most people believe that any increase in value of their home won’t be taxed when they sell it. This belief is so ingrained that taxpayers, and many accountants, neglect to check the details of the CGT relief when a home is sold.
In Mr and Mrs McHugh v HMRC TC06605, the appellants built their own home over 36 months and moved in during December 2007. They sold the property in September 2010 and did not declare the gain on their 2010/11 tax returns.