It was only a few weeks ago on the 8th of July that the government announced that there would be a stamp duty 'holiday' on homes purchased for up to £500.000.

The proclaimed aim was to ensure that momentum was maintained in the housing market and that as much as possible was being done to help an economy already badly affected by the pandemic. The move was welcomed by most (but not all) of those working in the housing sector. The 'holiday' comes to an end on 31st March next year.

However, almost forgotten and lost in the noise of the stamp duty 'holiday' was confirmation of the fact that the government is still proceeding with their radical changes to the reporting of and payment of tax on Capital Gains Tax (CGT) disposals, particularly on residential properties. A Capital Gain remains exempt on the disposal of a property which has been used solely as the owner's only or main residence throughout the time it was owned but these changes are likely to have a serious and immediate impact on those who own Buy to Let properties, otherwise own more than one property or have not always lived in the property throughout their period of ownership.

Samantha Hawkins is a specialist tax adviser working in the Wills Probate + Tax Planning team at local solicitors Thatcher + Hallam LLP. One of Samantha's roles is providing a personal tax service to clients, including CGT advice.

'Until this year any property disposals could be reported to HMRC in the usual way via the Tax Return and payment made on 31st January following the tax year end,' explains Samantha. 'However, this has changed. As from 6th April 2020, a UK resident selling or gifting a residential property in the UK at a gain has a period of only 30 calendar days from completion in which to report and pay a CGT liability.'

'HMRC allowed a short period of adjustment, for completions between 6th April and 30th June, to allow taxpayers to adjust to the reporting changes and the new online system,' adds Samantha.

'However for transactions completed from the 1st July 2020 onwards, a late filing penalty will apply for those who do fail to report on time and interest will accrue on any late payment of tax'.

It is also important to note that the reporting rules for Non-UK residents differ. Non-UK residents must continue to report sales or disposals of interests in UK property or land regardless of whether there is a CGT liability, within 30 days of completion of the disposal.

'There are many people who for a variety of reasons own one or more properties in addition to their main home,' adds Samantha. 'However, it is also clear from conversations that I have had with clients that many are not aware of the new rules.

For a free informal 'no obligation' chat about these new property tax rules, Samantha Hawkins can be contacted either on 01761 414646 or at [email protected]. Further information regarding Thatcher + Hallam can be found by clicking HERE :the Thatcher + Hallam website