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Legal News | 30.03.23

Capital Gains Tax (CGT) on second homes

A reminder of the rules…
If you dispose of a property (either by selling or gifting) which is not your primary residence, and you realise a gain on the disposal which exceeds your annual exempt amount (currently £12,300 but reducing to £6,000 from 6 April 2023), the gain that exceeds your personal allowance is subject to CGT.

For individuals, CGT on gains in relation to second properties is charged at 18% for basic rate taxpayers and 28% for higher and additional rate taxpayers.

For completion dates on or after 27 October 2021, you are required to report and pay CGT within 60 days of completion.

How to report
Reporting and payment should be made online via the gov.uk website by creating a Capital Gains Tax on UK property account.

HMRC have made clear that reporting online is to be the default option, however, for a trial period during 2022/23 and 2023/24, HMRC have agreed to make paper forms (forms PPDCGT) available to download for reporting CGT if you cannot use the digital service.

If you would like advice regarding CGT on second homes or help with reporting a gain, please contact the private client team on wealth@wansbroughs.com.


Posted By Our Wills, Tax, Trusts & Probate Team