Did you know that there are tax changes coming into force in April which will affect landlords selling rental properties?
At the moment, capital gains taxes on the capital profits that landlords make when selling their rental property is reported annually in a self-assessment tax return. This is only due for payment 9 months after the end of the self-assessment tax year, which is 5 April each year (payment due by 31 Jan of the following year).
New tax changes, effective for residential properties sold on or after 6 April 2020, require the capital gains on the sale to be reported to HMRC within 30 days of the sale being completed, via the HMRC Capital Gains Tax Real Time Service, and the capital gain taxes have to be paid within 30 days of the sale completion as well.
Landlords will no longer have a window of a few months before their taxes on the sale of rental property will be due, so if you are a landlord, then this is a bit of a ‘heads up’ from us!
We’re always happy to help and advise when it comes to buying or selling property, so if you have any questions regarding the above, then please do give us a call.
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