Capital Gains Tax on Residential Properties
Since the 6th of April 2020 there is a new online reporting regime for the sale of residential properties where there is capital gains tax to pay. This covers buy to lets, 'accidental' landlords (eg where you may have inherited a property), investment properties and any property that is not fully covered by principal private residence (PPR) exemptions for the whole of the period of ownership.
The sale of such non-fully exempt properties must be disclosed to HMRC online within 30 days of completion and the estimated tax paid within those 30 days. In addition, the gain must be reported on the tax return in the year that exchange of contracts took place. Late reporting can lead to penalties and interest being charged.
The team here at Kemps currently offer a three-part service for a fixed fee to calculate any such gain and the tax due before exchange based on estimated figures, to make the online disclosure and to complete the tax return reporting the gain. If you would like to know more about this service please call 01843 861188 and ask to speak to Harry Kemp or email harry@kemps accounting.co.uk.
As part of this process we will work with you to identify any PPR exempt periods of ownership and all the costs that can be claimed, to minimise the capital gains tax due.
Do date we have helped many clients who have sold properties in Broadstairs, Ramsgate, Margate, other Thanet towns, Kent, London and across the whole of the UK.