Recent changes on reporting for Stamp Duty and Capital Gains Tax
There is one thing we can all say – 2020 is a year like no other! The situation in the world is rapidly changing and the UK government has acted fast to change with it.
Long gone are the times when monthly Continuous Professional Development (CPD) at Guildford Accounting was about obscure and complex tax problems, we are busy learning about changes that affect almost every household in the country.
After the first months of government emergency initiatives to support workers and self-employed businesses affected by Covid-19, Rishi Sunak, the Chancellor, acted to support the property market and introduced temporary reductions on Stamp Duty Land Tax (SDLT) on properties bought after July 2020. This was done to encourage the property market which had been badly affected by Covid-19 and offered an exciting opportunity for buyers to purchase a house and save some tax.
However, there is one change that was also introduced this year, those prospective buyers should watch out for.
Until April 2020, if you needed to sell your property to buy a new one, and if you had to pay Capital Gains tax on the proceeds, you could report it through Self-Assessment and pay the tax due at the end of the year.
However, from April 2020, HMRC changed the rules so the seller of a capital item needs to report and pay the tax within 30 days from the date of the sale rather than at the end of the year. Penalties for late submission start at £100 and increase to £300.
It is easy to be caught out by ever-changing tax rules, so for a free, no-obligation first consultation book an appointment on our website.