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Autumn Statement 2015 – Capital Gains Tax Payment Window

taxation-payroll

Autumn Statement 2015 – Capital Gains Tax Payment Window

From 6 April 2019, it is proposed that the capital gains tax payable on the sale of a residential property will be payable 30 days after the sale of the property. At the moment, the tax is payable between 10 months and 22 months after the sale.

This new deadline will require solicitors and accountants to work together to calculate the gains in this new payment window and allow clients to meet their obligations.

At the moment the rate of capital gains tax is dependent on your income in the same period and there is also an annual exemption which might be set against the gain. Detail is awaited on how this new payment window will dovetail with the above matters and with the wider capital gains tax legislation. It may be that there will be a flat rate deduction of 28%, with the taxpayer having to reclaim any overpayment.

It should also be remembered that the sale of your home is exempt from Capital Gains Tax if it is your Principal Private Residence.

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