In his Summer Economic Update last week, Chancellor Rishi Sunak announced some quite generous changes to Stamp Duty Land Tax (SDLT) in relation to residential property purchases. By increasing the nil rate band on residential property from £125,000 to £500,000, the Chancellor has also reduced the SDLT payable when the property is worth over £500,000.
The changes will last until 31 March 2021 and the intention is to boost the housing market, not to mention the knock-on impact in other areas. Think about it; house movers often use local agents and removal firms, they buy new furniture, fixtures, fittings and homewares, they employ tradespeople to carry out renovations and, if their house moves are anything like mine, they probably need to book holidays to recover from it all – creating much needed economic activity.
Reporting and paying tax within 30 days of house sales
If you’re purchasing a house, it’s likely that you are selling one too and with the rule changes on 6 April 2020, it might be the case that you need to file a return with HMRC within 30 days of the sale. If the property is your “principal private residence” – your only or main home that you have always lived in, then a return won’t be necessary. However, if it was a second home or a rental property then you may need to complete and submit a return. Furthermore, if you have Capital Gains Tax (CGT) to pay, this has to be calculated on this return and paid within 30 days of the house sale.
Kate spends a lot of time working with businesses and their owners on tax strategies and mitigation, which includes looking at the business and its structure, through to the owners personal tax situation and their longer term goals and plans.
An experienced tax practitioner, a Chartered Accountant (a prize winner in her finals) and Chartered Tax Adviser, Kate has considerable expertise in tax planning and developing tax mitigation strategies for private and business clients – with particular experience in dealing with complex groups.
Kate graduated from Oxford University, qualifying and working at a senior level with a Big 4 firm before joining Sagars in 2001 and becoming a Partner in 2003.
Having walked down the aisle to ‘Dizzy’ by Vic Reeves and the Wonder Stuff, Kate was persuaded to move North from the West Country on the promise that the beer was better (we’re thankful she didn’t prefer cider).
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