Property Taxes update – December 2020

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

Call +44(0)330 024 3200 and discover how we can help you.

As we look forward to the festive break, there are some important updates that you should be aware of. As always, are are here to help if you need it. Just get in touch on the contact details below. We wish you all a peaceful and healthy Christmas and New Year.

Domestic Reverse Charge

The Domestic Reverse Charge (“DCR”) for the construction industry implementation date has been delayed until 1 March 2021. Please contact us for details about the DCR and to check your business is ready for the change.

Stamp Duty Land Tax ("SDLT")
SDLT holiday interaction with reliefs
Usually the maximum tax saving which can be achieved by the lower rates is £15,000, however, if a purchase benefits from Multiple Dwellings Relief ("MDR") a purchaser can get multiple bits at the cherry. Read full article
Mixed-use purchases
On 13 November 2020 HMRC changed its guidance to confirm that the 3% surcharge will not apply to a transaction including dwellings and non-residential property where MDR is claimed. Read full article

COVID-19: HMRC concessions

HMRC have introduced a number of concessions to help mitigate the burden on tax payers. Please see below:

VAT
- From 20 March 2020 to 30 June 2020 VAT payments are automatically deferred provided payment is made in full by 31 March 2021.
- Time to pay arrangements can be made to pay in monthly instalments of up to 12 months. This arrangement will be open from early 2021.
- The deadline for notifying hMRC of the VAT option to tax was extended to 90 days (previously 30 days) for decisions made between 15 February 2020 and 31 March 2020.
Capital gains tax elf-assessment
From 6 April 2020, Capital Gains Tax must be reported and paid for the sale of UK residential property within 30 days of completion.

HMRC deferred the introduction of penalties for late filing until 31 July 2020. ANy transactions taking place on or before 30 June 2020 will not be subject to late filing penalties.
Reasonable excuse
HMRC have added COVID-19 to their guidance as an acceptable defence when seeking to rely upon reasonable excuse. A tax payer must show the virus has affected them and the ability to meet their responsibilities but it is not an automatic excuse and will be subject to the facts of the case.
Companies house
- Company accounts have a filing extension of three months.
- Confirmation statement deadline has now been extended from 14 days to 42 days.

Assistance

Navigating around the different taxes can be a difficult task. If you would like to discuss your current situation or find out more information about one of the topics mentioned above, please contact one of our team who will be happy to assist you.

Do you need extra information?
Natasha Heron

Natasha is a member of the ICAEW as a qualified auditor and the Chartered Institute of Taxation, specialising in indirect taxes. Natasha has developed a specialism as an adviser on the Stamp Duty Land Tax implications of property transactions.

Contact Natasha at Natasha.Heron@hhllp.co.uk or on 01923 634460