By Andrew Mitchell, Tax Partner, Armstrong Watson Skipton

JUST when property owners think there can’t possibly be any more bad news regarding the taxation of property, along comes another of my articles on the subject!

Previous articles have covered increases in the tax burden on property landlords through the uplift in Stamp Duty Land Tax rates on buy-to-let properties and the restriction of loan interest relief available against rental income.

My last article warned that from 6 April 2020 the government will now further reduce the deemed occupation period allowable under Principal Private Residence relief and remove Lettings Relief, potentially increasing the amount of Capital Gains Tax (CGT) an individual will pay following the sale of a property which was previously used as their main residence.

The latest changes centre on the date CGT is paid on the disposal of a residential property. Generally any gain realised on selling your home is exempt from CGT so these rules will only apply where the sale is of a second property, such as a buy-to-let or holiday home, or there have been periods of absence from a main home.

Before 6 April 2020, CGT on the disposal of such a property was not payable until 31 January following the end of the tax year in which the property was sold. Dependent upon the timing of the sale, this meant that tax may not be payable for anywhere between 10 and 22 months after the date of sale, a useful cash flow advantage. However, rules are to be introduced to collect this tax significantly more quickly.

From 6 April 2020, CGT on the sale of residential property will be due for payment 30 days after the date of disposal, which could be several months before an individual is due to file a tax return, or provide their adviser with the information to prepare the return.

Accordingly, upon planning a sale of residential property upon which a CGT charge could arise, it is important that the seller contacts their accountant or tax adviser in good time to ensure that the disposal is reported to HM Revenue & Customs and the CGT paid 30 days after the date of sale. Otherwise HMRC interest and penalty charges could ensue!

If you are considering selling your property and are concerned about the tax implications please contact Andrew Mitchell on 01756 620000 or email