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With house sales soaring thanks to the cut in Stamp Duty Land Tax (SDLT), more and more people are falling into a potential tax trap.
By not understanding the tax requirements on the profits made when selling a house, many homeowners leave themselves wide open to a penalty from HMRC.
UK residents are required to pay Capital Gains Tax (CGT) on any property that is not their main home. But it some cases, CGT also applies to larger homes with land, homes used for business purposes or properties which have been let out.
Sue Blair, Tax Partner at David Allen said: “More and more often, we are speaking with clients who were unaware of the requirement to pay capital gains tax but also the new 30-day deadline for making the payment.
“It can be a complex area to get your head around but there are ways to ensure that you stay compliant and also to plan for the future and minimise the amount you may have to pay.
“The last thing you want is to be faced with a penalty charge further down the line just because you didn’t understand your requirement to pay up on the profits made.”
If you are unsure whether or not CGT applies to you, or you need some advice to ensure you stay compliant, please get in touch with a member of our tax team.
