Well, 6 April 2020 is less than a month away (where has that time gone?) and I thought that it is probably worth a brief reminder of the changes that are coming in shortly.
Firstly, the period for which you can claim main residence relief for the months prior to sale will reduce from 18 to 9 months. In addition, letting relief will only be available where the owner of the property also lives in the property with their tenant.
Secondly, where contracts for sale of a residential property are completed after 6 April 2020, the gain must be declared, and the associated tax paid, to HMRC within 30 days of the date of completion.
In respect of the payment deadline, one thing that has been clarified since my last blog is that where contracts are exchanged prior to 6 April 2020, but completion takes place after this date, the 30-day payment deadline will not apply. Instead the gain will have to be reported, and tax paid, within the normal self-assessment deadlines i.e. the 31 January following the end of the tax year.
Therefore, there is still time to take advantage of the more favourable tax reliefs and longer payment period if you are already considering selling a residential property.
Finally, who knows what else will be introduced next week (Budget Day–Wednesday 11 March)!!
If you wish to discuss any of the above further and how the changes may affect you, please give me a call.