As you may already know, any profit made on a buy-to-let property or holiday home is subject to Capital Gains Tax when it’s sold or passed on to a new owner.
Until recently, a seller might have anywhere between 10 and 22 months to pay the tax (depending on when in the tax year the sale completed and HMRC’s tax return deadline), but as of 6th April 2020, HMRC reduced the timeframe to just 30 days.
As a result, if you’re a landlord planning to offload several properties within your portfolio, it now requires a little more planning than before. Everybody gets a Capital Gains Tax allowance of £12,300 each year, so you’ll want to ensure you spread the sales over more than one tax year in order to avoid a large tax bill at the end of the financial year!
This matter is far from straight forward, so if you’re looking to sell or have any questions relating to CGT, please get in touch with us via firstname.lastname@example.org.