New tax laws will go into effect for individuals wanting to sell property after April 6, 2020. The new laws have three components. The first component is for those with any property for sale that will produce a gain. If gain on the property is anticipated, sellers are not only required to report the gain, but will also be responsible for paying the best estimate of the tax owed on the sale within 30 days. Failure to do so will result in a financial penalty.
Residential homeowners can also expect changes coming down the pipeline for homes occupied as main homes or rental homes. Current tax law allows homeowners to count 18 months of occupancy, whether living in the home or not. The new law will reduce that time to nine months. This new law has the potential to increase capital gains tax payout in respect to time when the home was unoccupied.
In unison to occupancy reduction, Letting Relief is no longer available unless the home has been occupied as the homeowner’s main home at some point during ownership. In the past, Letting Relief was helpful in reducing gain when a home sale occurs. David & Co is instituting a unique software to help homeowners more accurately calculate gain if selling a home before or after the new laws take effect.
For more information about the new tax laws, the 30-Day Rule worksheet or to start the house selling process, visit the website at David Beckman & Co Ltd. or call +44 (0) 1737-844-322.
About David Beckman & Co : David Beckman & Co Ltd. works earnestly to make business more profitable and less taxing. The team is passionate about helping businesses grow in the most fiscally responsible way.