Landlords face another tax change from 6 April 2020

Capital Gains Tax (CGT) is applied to the sale, gifting or transfer of a residential property that is not a main home.

CGT is payable on the profit made between the sale price and purchase price of a home, taking into account certain expenses/tax reliefs. 

The timescale for reporting the sale and paying any tax due shrinks to just 30 days from completion.

Landlords missing the deadline will face penalties and an interest charge on the amount of CGT due.

The above will apply to:

A buy to let or house in multiple occupation
A holiday home
An inherited property

But you won’t have to make a report and make a payment when:

A legally binding contract for the sale was made before April 6, 2020
The disposal meets the criteria for Private Residence Relief
The sale was made to a spouse or civil partner
Any gain (including any other chargeable residential property gains in the same tax year) are within your tax free allowance (called the Annual Exempt Amount)
The property disposal was for a loss
The property is outside the UK
HM Revenue & Customs will open a new online service for reporting CGT in time for the rule change.

Expats and other non-residents should also report any home disposal in the UK within 30 days, whether CGT is due or not.

“If you’re a non-UK resident you must continue to report sales or disposals of interests in UK property or land, regardless of whether there is a capital gains tax liability within 30 days of completion of the disposal, said an HMRC spokesman.

“You will no longer be able to defer payment of Capital Gains Tax via a Self-Assessment return, and any tax owed must be paid within the 30-day reporting and payment period.”