Just when we could do with cheering up I have seen announcements to say the Government are thinking of increasing CGT liabilities. Still it’s got to go though consultations yet so it will probably be some time yet before it comes to be and we don’t know any details yet.
Just when we could do with cheering up I have seen announcements to say the Government are thinking of increasing CGT liabilities. Still it’s got to go though consultations yet so it will probably be some time yet before it comes to be and we don’t know any details yet.
It does however remind that since 6th April 2020 accelerated reporting and paying of CGT is in force. This applies to all disposals, where tax is due, of residential property and includes disposals by Executors and trustees. The report and payment must be made within 30 days of completion and there are penalties for lateness.
The reporting government guidance is not particularly user friendly so anyone thinking they may be caught by this needs to speak to their accountant at an early stage. Calculations can be complex as they can involve knowing the original cost (to calculate the gain), costs during ownership, and is also tied into your income. CGT UK property on line account has to be set up with the HMRC which is separate from other Inland Revenue account.
Obviously, the tight time scale allows little time to deal with this so it is most important to have things lined up in advance. I am not really sure what is in this for the Government as once the initial advancement has taken place the actual Tax take will remain the same. With some trusts the calculations will be quite complicated and possibly valuations obtained as to original worth - these are not always available as readily as this time scale allows.
Don’t get caught out by this - act early. If you are affected by these rules you will probably have an accountant so involve them sooner rather than later!!
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