fbpx

HMRC Stick to Limited Period for CGT Payment on Residential Property Gains

18th September 2018 By Arman Khosravi

Despite strong representations from the professional community, HM Revenue and Customs (HMRC) have decided that they will stick with a 30-day initial payment requirement for Capital Gains Tax (CGT) on residential property gains for disposals after April 2020. The payment will have to be lodged with HMRC within 30 days of the date of completion of the sale.

The sale of one’s primary residence in the UK is not generally taxable for UK residents, so the change will normally catch only those who are non-resident or who sell second properties.

The system will require a payment on account of the eventual liability to be lodged with HMRC. Under the UK tax system, the eventual rate at which CGT is payable can be affected by other transactions and taxable income. The final liability stands to be assessed when the tax return is submitted, which could be as late as the January following the tax year in which the disposal is made.

Source: Concious

Latest News

High Court Grants Parental Order Despite Previous Adoption

18th April, 2024 By

In law, adopted children are regarded as having been born to their adoptive parents. The Family Division of the High Court recently considered whether that fact precluded a parental order being granted under the Human Fertilisation and Embryology Act 2008 (HFEA) in respect of a child born via surrogacy. A couple who lived in the USA had entered into a surrogacy arrangement with another woman. An adoption order naming the couple as the child's parents had been made by a US court and was automatically recognised under UK law. However,...

Flat Owner Not Liable for Pre-existing Structural Issues

16th April, 2024 By

When building owners carry out works on their property, are they liable for damage to adjoining properties that results from pre-existing structural issues? The Court of Appeal recently provided welcome clarification on that question. The owner of a ground-floor flat wished to extend it by building out into his garden. He served notices on owners of adjoining properties, as required by the Party Wall etc. Act 1996. The works caused the rear wall of two adjoining properties to drop by about 2 mm, which led to internal walls and floor...

Challenge to Will's Validity Rejected by High Court

12th April, 2024 By

The best way to ensure your assets will be distributed as you wish is to have your will professionally drafted by a qualified solicitor. In a recent case, a challenge to the validity of an elderly man's will was dismissed by the High Court. The man had previously made a will in 2011, leaving most of his estate equally to his three children. In 2018, by which time one of his sons had predeceased him, he made a further will, leaving the residue of his estate to his other son...

Defiance of Family Court Orders Will Always End Badly

10th April, 2024 By

Custodial sentences very rarely come into play in the family courts. Where there have been repeated breaches of court orders, however, judges may have little choice but to clamp down. This was illustrated in the High Court during committal proceedings that stemmed from a child custody dispute. The background to the case involved contested proceedings between the father and mother of a young child. These concluded with a court order establishing that the child – a daughter – would live with the mother. Three months later the daughter travelled with...