Property Taxes updated – June 2020

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

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The property market came to a grinding halt while the UK followed the Government’s lockdown procedures. The move from ‘Stay at Home’ to ‘Stay Alert’ has allowed a sigh of relief as this has meant that the property and construction sector has started to move but how the future looks for the sector is uncertain.

Domestic Reverse Charge

The Domestic Reverse Charge (“DRC”) should be coming into force on 1 October 2020 for the construction industry, however there are rumours that it may be delayed due to COVID-19. A reverse charge is an anti-fraud measure and is designed to ensure that a supplier does not charge VAT and then fails to account for it to HMRC. The introduction of the reverse charge in the construction industry is a result of perceived widespread fraud in this sector. Read full article

SalesPurchases
Capital Gain Tax changes for UK residents
We mentioned in our March newsletter that the process for reporting and paying Capital Gains Tax (“CGT”) on the sale of UK residential property has changed. This is a fundamental change to the reporting and payment of CGT. Please click below to find a summary of the changes. Read full article
Stamp Duty Land Tax - What is mixed use purchase?
A mixed use property is one which has both residential and commercial elements. The commercial element means that the purchase benefits from the lower non-residential rates and is not subject to the 3% surcharge, generating significant savings. Read full article
Performing building worksDelay tax payments
Developers - Should you be registered for CIS?
If you are a business and are involved in construction you are probably aware of Construction Industry Scheme (“CIS”) but it is often overlooked by property developers and property investors. Read full article
Temporary changes
Temporary changes have been made to the tax payment system as a result of Coronavirus. The changes have been made to help businesses manage their cash flow. HMRC will not charge interest or penalties on any amount deferred as a result of the Chancellor’s announcement. 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