Changes to CGT on residential property
PwC's Gillian Banks, Vicky Smallwood from PKF Francis Clark and Frank Haskew, Head of ICAEW Tax Faculty, are hosting a webinar at 12pm on 17 March, explaining new rules on capital gains tax (CGT) on residential property, offering tips and outlining pitfalls.
If draft Finance Bill clauses become law, from 6 April 2020 changes to CGT reliefs available to individuals who let out their homes, will almost certainly mean higher CGT bills for those selling residential properties. Such landlords may now face much more limited CGT lettings relief. Meanwhile the automatic relief for the final 18 months of ownership of a main residence is expected to reduce to just nine months.
Not only will there be more tax to pay, it will also be payable much earlier, 30 days after the date that the disposal completes. This change has already been enacted and HMRC is developing a new system for reporting and paying CGT on UK residential properties. The process, which requires clients to set up a new online CGT account and to authorise their agent digitally, is causing considerable concern.