Capital Gains Tax

News: Changes to Capital Gains Tax

20th October, 2022, Kayleigh Wilson

Kayleigh Wilson, Tax Specialist at Stephenson Smart Chartered Accountants and Business Advisors, talks through the ongoing changes to Capital Gains Tax (CGT) and the areas to be aware of.

Capital Gains Tax

Capital Gains Tax is a tax on the profit made after a sale of an asset (i.e a property) that’s increased in value.

The gain you make is the part that is taxed, not the amount of money you receive.

If you sold a UK residential property on or after April 6, 2020, and you have a Capital Gains Tax liability, you must report and pay the tax due online using a CGT on UK property account.

Depending on the asset, you may be able to reduce any tax you pay by claiming a relief.

Principal Private Residence Relief

There’s been lots of changes since 2020, particularly with the rules of principal private residence (PPR) relief.

In a nutshell, when a person sells their only or main residence the gain is exempt from Capital Gains Tax due to PPR.

It may apply to all or part of a gain on a property and for most taxpayers, any gain made on the sale of their home will be completely exempt as it will be covered by PPR relief.

The charge may arise though if the taxpayer has been absent from the property during their ownership, or if they own more than one residence.

Lettings Relief

Lettings relief can only be applied where the residence qualifies for PPR relief – it must have been a person’s main or only home at some point. It’s given after PPR relief, where part of the gain remains chargeable due to residential letting during a period of absence.

Since 2020, lettings relief is available only if there is shared occupancy, the owner and the tenant both live in the residence at the same time, it is just this period of joint occupancy that qualifies for lettings relief. Lettings that occurred prior to 6 April 2020 that would have qualified for lettings relief under the pre-6 April 2020 rules is not banked.

It’s also worth noting that penalties are being issued by HMRC for the late filing of Capital Gains Tax returns on the sale of UK residential property, whether or not you are a UK resident. Depending on the date of the disposal, you now have either 30 or 60 days from the date of completion, to submit your CGT Return online.

I am an expert in Capital Gains Tax, please get in touch if I can help you.

20th October, 2022, Kayleigh Wilson

Kayleigh Wilson, Tax Specialist at Stephenson Smart Chartered Accountants and Business Advisors, talks through the ongoing changes to Capital Gains Tax (CGT) and the areas to be aware of.

Capital Gains Tax

Capital Gains Tax is a tax on the profit made after a sale of an asset (i.e a property) that’s increased in value.

The gain you make is the part that is taxed, not the amount of money you receive.

If you sold a UK residential property on or after April 6, 2020, and you have a Capital Gains Tax liability, you must report and pay the tax due online using a CGT on UK property account.

Depending on the asset, you may be able to reduce any tax you pay by claiming a relief.

Principal Private Residence Relief

There’s been lots of changes since 2020, particularly with the rules of principal private residence (PPR) relief.

In a nutshell, when a person sells their only or main residence the gain is exempt from Capital Gains Tax due to PPR.

It may apply to all or part of a gain on a property and for most taxpayers, any gain made on the sale of their home will be completely exempt as it will be covered by PPR relief.

The charge may arise though if the taxpayer has been absent from the property during their ownership, or if they own more than one residence.

Lettings Relief

Lettings relief can only be applied where the residence qualifies for PPR relief – it must have been a person’s main or only home at some point. It’s given after PPR relief, where part of the gain remains chargeable due to residential letting during a period of absence.

Since 2020, lettings relief is available only if there is shared occupancy, the owner and the tenant both live in the residence at the same time, it is just this period of joint occupancy that qualifies for lettings relief. Lettings that occurred prior to 6 April 2020 that would have qualified for lettings relief under the pre-6 April 2020 rules is not banked.

It’s also worth noting that penalties are being issued by HMRC for the late filing of Capital Gains Tax returns on the sale of UK residential property, whether or not you are a UK resident. Depending on the date of the disposal, you now have either 30 or 60 days from the date of completion, to submit your CGT Return online.

I am an expert in Capital Gains Tax, please get in touch if I can help you.


Capital Gains Tax

Our Offices

King's Lynn Office

22-26 King Street, King’s Lynn,
Norfolk, PE30 1HJ

Open 9am until 5pm Monday to Friday

T:   01553 774104

E:   kingslynn@stephenson-smart.com

Gorleston Office

East Coast House, Galahad Road, Beacon Park,
Gorleston, Great Yarmouth, Norfolk, NR31 7RU

Open 9am until 5pm Monday to Friday

T:   01493 382500

E:   eastcoastoffice@stephenson-smart.com

Acle Office

Queens Head House, The Street, Acle,
Norwich, Norfolk, NR13 3DY

Open 8:30am until 5pm Monday to Friday

T:   01493 750207

E:   acle@stephenson-smart.com

Fakenham Office

10 Oak Street, Fakenham,
Norfolk, NR21 9DY

Open 9am until 5pm Monday to Friday

T:   01328 863318

E:   fakenham@stephenson-smart.com

Wisbech Office

2 The Crescent, Wisbech,
Cambridgeshire, PE13 1EH

Open 9am until 5pm Monday to Friday

T:   01945 463383

E:   wisbech@stephenson-smart.com

March Office

23 Dartford Road, March,
Cambridgeshire, PE15 8AN

Open 9am until 5pm Monday to Friday

T:   01354 653026

E:   march@stephenson-smart.com

Downham Market Office

1st Floor, 9 Market Place,
Downham Market, Norfolk, PE38 9DG

Open 9:30am until 4:30pm Tuesdays and Fridays

T:   01366 384121

E:   downhammarket@stephenson-smart.com

Contact Stephenson Smart



    Top