New 30-Day Rules for Capital Gains on Residential Property

New 30-Day Rules for Capital Gains on Residential Property

New 30-Day Rules for Capital Gains on Residential Property

New rules have now come into force in relation to capital gains made on disposals of UK residential property*. Several key actions are now required if a taxable capital gain has arisen, including some that now need to be made fast:

  1. Taxpayers need to report the property’s disposal within 30 days of the actual disposal;
  2. They will need to pay the estimated Capital Gains Tax (‘CGT’) to HMRC within 30 days of the disposal.
  3. Those who fill in and submit a Self-Assessment tax return will also need to include details of the disposal on their return.

Who Do the New CGT Rules Apply To?

The new rules apply whether you’re an individual, joint property owner, trustee, partner in a partnership or LLP, or a personal representative.

What Counts as a Residential Property Disposal?

The new rules apply to all UK residential property that was disposed of (taken as the date of the exchange of contracts) since 6 April 2020 inclusive, where a capital gain was made that will require payment of CGT.

To fall within the rules, a UK residential property must be one that:

  • is suitable for use as a dwelling, or;
  • is being built or adapted for use as a dwelling.

It can be one in which the the owner has never lived or has lived for only part of the period they owned it. It can also be a rental property or a holiday home.

Where a property has been used for mixed purposes, only the capital gain that’s equivalent to Read more

Have You Received an Annual Return/Confirmation Statement Reminder?

Have You Received an Annual Return/Confirmation Statement Reminder?

Have You Received an Annual Return/Confirmation Statement Reminder?

Please do not ignore the yearly e-reminder/letter, from Companies House, to submit the Annual Return/Confirmation Statement for your Company.

Hi — I’m Eveline and I am the administrator/coordinator of the Limited Companies business team and this is one problem that we come across too often at Taxfile.

Confirmation Statement form CS01As a Director, you just need to confirm once a year that there were no changes to the company and, if there were any, you can update them via the annual Confirmation Statement. Taxfile will help and send you a reminder — and we can submit the statement for you if you wish. Either way, please do make sure you submit the confirmation statement to Companies House online and in time.

If ignored, Companies House will start Strike Off action some time after the statement becomes overdue. If you ignore their further communication, they will dissolve your company after two months of publishing in the First Gazette. This would result in your bank sending you notice that the business bank account has been frozen and your assets will stay with the Government.

Taxfile is able to restore your company and help retrieve the money, but this is quite a long and costly process that could so easily have been avoided. So, please don’t forget to submit the Annual Return/Confirmation Statement in due time each year, or arrange for Taxfile to do so for you. Call 020 8761 8000 or contact us here and we’ll be happy to help with anything to do with tax, accountancy, bookkeeping, VAT or anything else to do with limited companies.

This post was brought to you by Eveline at Taxfile.

SEISS: The 5th & Final Round

5th SEISS Grant - how to claim

HMRC has already started contacting possible eligible sole traders and partnerships for the 5th and final Self Employed Income Support Scheme grant announced by the Government last year.

HMRC’s online access for applications is due to open later this month (July) and the grant will cover the period 1st May 2021 through to 30th September 2021.  You can claim the 5th grant if you believe that your business profit will be impacted by coronavirus between these dates.

This round of grants requires turnover calculations to be done by the applicant, following four stages to determine the two turnover figures required in the application and hence, how much they will be eligible for.

  1. You will first need to work out your turnover (money received) for a 12-month period starting from any date between 01/04/20 to 06/04/20. Your figure must include the turnover from all your businesses.  You can ask us at Taxfile for your figure if we have submitted your 20/21 tax return.  If you haven’t yet done your 2020/21 tax return, it might be an opportunity to contact your tax agent at Taxfile and bring in your financial data for the period, so we can give you an accurate figure, as HMRC will be able to check the figures once you do submit your tax return.
  2. The second stage is to adjust the 12-month turnover figure by removing the monies received from any SEISS grants or COVID relief grants from the council/government.  Although these grants are viewed as subject to income tax and national insurance, they will not be considered as part of your 12-month turnover figure for the 5th SEISS grant.
  3. The third stage requires you to calculate a previous year’s turnover to use as a reference figure. This is the 2nd figure you will need for the application.  HMRC states that in most cases you must use the 2019/20 tax return as your reference year.  If for any reason 2019/20 was not a normal year, you can use the turnover reported in your 2018/19 tax return.  For ‘not a normal year’, HMRC has stipulated the following examples; being on carers or sick leave for a prolonged period, losing a large contract, reservist duties, or being eligible for the 5th SEISS grant but not having submitted a 21019/20 tax return.  The turnover for your reference figure can be found on the tax return summary we would have issued you.  If you need this figure, please do not hesitate to contact your tax agent on 020 8761 8000.
  4. The fourth stage is to compare the two turnover figures. Only when the figure from stage 3 (the reference year) is greater than that obtained for the 20/21 figure will you be eligible for the 5th SEISS grant.  Furthermore, if the 2020/21 turnover figure has reduced by 30% or more when compared to the reference turnover figure, the grant will be 80% of the 3-month average profits, with the maximum grant payment capped at £7,500.  If the 2020/21 turnover is less than 30%, the grant will be 30% of the 3-month average profits, capped at £2,850.
How we harness technology at Taxfile in Tulse Hill, Dulwich, Devon & Cornwall

Harnessing Technology at Taxfile

How we harness technology at Taxfile in Tulse Hill, Dulwich, Devon & Cornwall

The rapid pace of technological change has caused some of the biggest shifts in how we view and process our tax returns. At Taxfile, we’re constantly striving to use technology as effectively as possible to aid us in collecting, analysing, and collaborating when working on your personal data.

Over the pandemic, we’ve had to place our reliance even further on technology to maintain our standards, with regular meetings online. We’re constantly improving the efficiency of our work pipeline and, with the ability to pull figures directly from online bank statements, we can ensure precision in the numbers we present you with. For the last two years, we’ve implemented cloud technology as both a collaborative tool between our senior and junior staff and as storage for various databases used to track everything from employee working hours to the status of your tax return. We’re expanding further on this concept in collaboration with Pure Technology by merging our existing cloud systems with our current remote work solution to form one, all-encompassing workspace environment. Hosting it in the Microsoft Cloud ensures that, with the help of our office staff, your paperwork and bookings can be sent to and viewed by your tax agent as soon as possible. This and a variety of other endeavours are examples of our ambitions to be at the forefront of innovations, and constant review of our policies ensures we remain ahead, or on track, to meet the standards set by Making Tax Digital (MTD) for its 2023 launch.

Contact South London’s Favourite Accountant

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