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Capital Gains Tax: Buy-To-Let landlords To Be Hit Again

HMRC proposes changes to the payment window ...



Buy-to-let landlords are having a difficult time of it right now with all the tax changes going on. HMRC have thrown them another curveball with the timings of Capital Gains Tax payments on a property sale ...

Selling a buy-to-let property will need a lot more prior planning if this proposed change to the Capital Gains Tax payment window comes into force!

Selling a buy-to-let property will need a lot more prior planning if this proposed change to the Capital Gains Tax payment window comes into force!

copyright: andreypopov / 123rf stock photo

Landlords have up to 22 months to ensure payment of CGT was made when a property that isn't the main residence is sold. They are now proposing that this payment is paid within a 30-day window following the sale.

"This is in consultation right now, but could be another hit to buy-to-let landlords!"

As you are probably aware, CGT computations are complex. There is a need to establish an occupation history of the property, what you've spent out, base costs and check for available reliefs. I find it difficult to understand how HMRC are considering this, given the complexity of the calculations and the tight deadline.

I think it is important to point out that if you 'gift' a property to anyone other than your spouse or civil partner, CGT on the disposal will still need to be paid even though no money has physically changed hands.

Buy-to-let landlords have had to deal with restrictions on mortgage interest, stamp duty surcharges and increased rates of Capital Gains Tax and may now have the burden of this 30-day payment window denting cashflow

"This change from HMRC will require a great deal of planning before any property disposal!"

If you'd like to find out more about Capital Gains Tax and how this proposed change can affect you, do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.

Until next time ...


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More about Helen Beaumont ...

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.