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More property tax headaches

George Osborne  announced further proposals affecting property investors in his Autumn Statement on Wednesday 25 November.

These are:

Payment of Stamp Duty Land Tax (SDLT)  – currently the SDLT payable on a property purchase is due 30 days after completion. This will shorten to 14 days some time between 2017 and 2018.

Payment of Capital Gains Tax (CGT)  – currently CGT is paid on any property gains nine months after the end of the tax year in which you dispose of a residential property.

For example if you sell a Buy to Let on the 31 December 2015 you  currently pay CGT on any gain on 31 January 2017 as part of self assessment. .

This will change from April 2019.

The tax will be payable 30 days after you complete on the sale.

You will have a very short time to calculate the tax due.

There will be a consultation process on the new changes in 2016.

My advice on this point is to get in the habit now of seeking professional help before you even sell the property.

It makes sense to be aware of any tax due before and not after you make a sale.

Andrew Scott             

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