Property Taxes update – March 2020

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

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On 11 March 2020 Chancellor Rishi Sunak delivered his first Budget in the House of Commons, announcing  the Government’s tax and spending plans for the 2020/21 tax year. The Budget included some beneficial changes, albeit the most significant amendments were announced in the previous Budgets, which are going to come into force from April 2020.

 

LettingsSales
Non-Resident companies
From 6 April 2020, non-resident companies will be subject to corporation tax on their UK property income. HMRC should automatically issue new company Unique Taxpayer Reference Numbers (“UTRN’s”), however, if a UTRN is not received by 30 June 2020 one should be requested from HMRC. Read full article
Capital Gain Tax changes for UK residents
Three significant changes are coming into affect from 6 April 2020 for UK residents selling residential properties: 1. Capital Gains Tax ("CGT") reporting deadline will be pushed forward to 30 days after the date of completion; 2. Restriction of Principal Primary Residence ("PPR") relief; and 3. Amendment to lettings relief. Read full article
Corporate property ownersBudget 2020
Annual Tax on Enveloped Dwellings ("ATED")
Residential properties with values exceeding £500,000 held by non-natural entities (i.e. companies, LLPs, Trusts etc.) are subject to ATED. The £500,000 threshold is based on market value therefore property portfolios should be reviewed regularly. Read full article
2% surcharge for non-residents purchasers
From 1 April 2021 the purchase of residential property in England and Northern Ireland by non-UK resident individuals, or companies, will be subject to an additional 2% surcharge. The surcharge will be applied on top of any other Stamp Duty Land Tax (“SDLT”) liability. Read full article

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