Capital Gains Tax: Buy-To-Let landlords To Be Hit Again |
HMRC proposes changes to the payment window ... |
POSTED BY HELEN BEAUMONT ON 06/07/2018 @ 8:00AM
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!
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 ...
HELEN BEAUMONT
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