A leading property tax specialist at East of England accountancy firm Moore Thompson has launched a petition to Parliament to delay the introduction of significant Capital Gains Tax (CGT) changes to residential property in April.
Emma Bunting, a Senior Tax Manager at the firm, which has offices in Spalding, Wisbech, Market Deeping and Peterborough, is calling on people to get behind her petition, which she believes could have a significant impact on those trying to sell properties during these already difficult times.
From 6 April several key changes are due to take place to the tax treatment of property transactions. These include a reduction in the final period exemption from 18 months to 9 months, lettings relief to be restricted to owners who share occupation with their tenant and changes to the reporting and payment of CGT liabilities arising on the disposal of residential property.
This last point, in particular, is particularly important, Emma feels, as it means that a provisional calculation of the gain will need to be submitted via an online return and the arising tax paid over to HM Revenue & Customs (HMRC) within 30 days.
Currently, individuals have up to 22 months in some cases to pay CGT on the disposal of a residential property.
Emma said: “HMRC has already decided to delay some tax measures in light of the ongoing Coronavirus pandemic, including the controversial Off-Payroll rule, known as IR35.
“Landlords and property investors are already struggling due to the Coronavirus outbreak as many of their tenants may be unable to cover their rents. They must be supported like any other business or individual experiencing hardship.”
Emma added: “Individuals should be given more time to make informed decisions in a climate that is not dictated by economic uncertainty.
“Without a delay, many individuals’ hands will be forced to accept the new rules at 6 April without an opportunity to dispose of properties which will now not sell, unless at a loss or considerably undervalued and with significantly less professional resources available.”
If you would like to sign Emma’s petition and support the property industry, please visit http://chng.it/QpMhgqcpqG