These days, even people of modest wealth may be affected by capital taxes. The basic rate for capital gains tax is set at 10% or 20% for general assets (20% if you exceed the basic rate band). Notably, this rate for capital gains does not include the disposal of residential property, which is set at 18% or 28% – apart from your own home which is likely to be covered by Principal Private Residence relief.
Changes in legislation – from 6th April 2020 anyone selling a property in the UK may have to complete an online report to HMRC and pay any Capital Gains Tax which is due, within 30 days of completion of the sale.
You will have to report if you are selling
- a property that you’ve not always used as your main home
- a holiday home
- a property which you let out for people to live in
- a property that you’ve inherited and have not used as your main home
- if you are not UK resident at the time of the sale
Penalties and interest may be charged if this is not reported within the 30 day deadline.