📢 What is Capital Gains Tax? Is it likely to go up later this year? How much is it and when do I pay? 🤔
What is CGT?
➡ If you have a second home, and sell it - broadly, you pay tax on difference between how much you bought and sold for - this is called CGT 🏡🏡
➡ 18% for Basic Rate Taxpayers (BRT)
➡ 28% for Higher Rate Taxpayers (HRT)
➡ Annual allowance is £12,300 (on which no CGT would be paid)
New rates (we anticipate the following increases in this Autumn's Statement):
➡ 20% for BRT
➡ 40% for HRT
➡ Annual allowance £2,000 (on which no CGT would be paid)
How much extra will you pay?
➡ Average price in last 10 years rose £168,703 to £251,500
➡ Average capital gain £82,798
➡ BRT today would pay £12,690
➡ BRT proposed would pay £14,100
➡ HRT today would pay £19,739
➡ HRT proposed would pay £28,199
When is the payment due?
➡ 30-day reporting: A requirement for UK residents to report and pay CGT within 30 days was introduced on 6th April 2020 ⏳
➡ The Office of Tax Simplification (OCT) has recently published a report to help taxpayers meet this deadline ☠
➡ The latest data from HMRC suggests as many as one-third of CGT returns were filed outside of 30 days and in the last six months of 2020 ❌
➡ Late filing penalties of £1,311,300 were issued since the 30-day window was introduced 💳
➡ The new report proposes an extension to 60 days, will certainly help people to comply with the rules ✔
➡ You can download the report here: https://lnkd.in/dK777sH 📩
🧙♂️ Knowledge of the rules is particularly important when selling a Buy-to-Let property or a second home. Interested in what these changes mean for you? Get in touch, we'll put the virtual coffee on ☕
#cavendishexperts #landlords #landlordsuk #cgt #capitalgainstax Rishi Sunak #tax #property #propertyinvestment #propertydevelopment
If you need any further information about renting or selling property in Nottingham city centre, please contact us here at Cavendish Residential 👍 www.cavendishproperty.co.uk
Posted 16 June 2021
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