A change in coming in April 2020 that will affect landlords and second home owners when they come to sell up.
In the past a Capital Gain on the sale of a second property could be reported in a self assessment return. This meant that if a gain was made on the 6th of April that the tax would not be due for nearly 22 months! The gain would be reported at the end of the tax year and the tax wouldn’t be due until January 31st of the following year.
Full details here.
Consultation has just finished on a change that will mean that payment will be due withing 30 days of the disposal. The seller will have to submit a “payment on account” return at the same time.
Obviously this wont affect people selling their main residence as Principle Primary Residence Relief normally applies.
Get in touch if you are thinking of selling a rental or holiday home.
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