If you are selling UK residential property – check with your tax advisor.
15 months after being introduced, many people are still not aware of the change to reporting requirements for the disposal of UK residential property to HM Revenue & Customs. This has been a big shake up to the previous system where if you made a capital gain on UK residential property, it was reported via a Tax Return and any tax due was paid as part of Self-Assessment. Under the new regime if you are selling a residential property at a gain and capital gains tax is due you need to report the gain to HM Revenue & Customs and pay the tax within 30 days of completion.
If you don’t report a gain and pay the tax within 30 days there are penalties and interest will be charged.
The new regime applies to individuals, executors and trustees.
The tax system is not always clear and every individual circumstance is different.
If you are unsure of whether this affects you please contact a member of our tax team and we can advise you in advance of the transaction to avoid any nasty surprises!
Rebecca Oatley is an Associate at A C Mole and part of the Tax Team. Rebecca can be contacted at our Taunton office or by email on roatley@acmole.co.uk
