When CGT declaration required tax/years 19/20 & 20/21

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    When CGT declaration required tax/years 19/20 & 20/21

    Bought a property, rented out, Scottish Highlands, cheap, £32k in 2000. Sold this tax year, Date of entry 21/02/2020, £105k (3 beds, views of sea lochs, mountains, within 50 mtrs of stream). Various buying and selling expenses: 1st time ever selling a house that I’d not always lived in.

    Am I right that this should be declared with the normal SA return, for tax year 2019/2020, by 31/01/2021?

    I am also in process of selling off a further two houses in Scotland, and plan another during tax year 2020-2021 (age & health, not s24). Am I right in thinking if this happens the CGT needs computing and declaring within 30 days of sale ? (So perhaps declared before the 1st, 2019-2020, sale?).

    Further, re. date of sale in Scotland for tax purposes. Am I right in thinking that is date missives are concluded rather than date of entry when the money changes hand and new owners can move in please?

    Regards & thanks in advance
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    #2
    See this news article. But don't know what missives are.

    https://www.landlordzone.co.uk/news/...ains-tax-rules

    Comment


      #3
      Thanks Mrs M!
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        You know about selling only one per tax year to use as much free CGT allowance as possible, don't you?

        Comment


          #5
          Originally posted by theartfullodger View Post
          1st time ever selling a house that I’d not *always* lived in.
          Does that imply you've lived there as PPR at sometime?
          If so lettings relief and last 18 months (changing after this tax year)?

          Comment


            #6
            Re date of disposal;

            https://www.taxationweb.co.uk/tax-ar...disposals.html

            Comment


              #7
              It's going to be a lot of Tax Artful. If I might ask, you don't perhaps have any family members likely to ultimately inherit -- doing this in slices over a decade or so might be less painful.... (albeit Corbyn was going to abolish the annual exemption altogether and raise the rates so in the long run one never knows - it might be worse).

              Yes the declarations will be in an inverse order.

              Comment


                #8
                Thanks Andrew, v helpful: I've told the boys (3 sons, their wives, 7 grand-kids..) there will be nothing to inherit as I plan to drink the proceeds. Brought them up to stand on their own feet: ( Tizer-virus might change that..)
                I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                Comment


                  #9
                  Originally posted by theartfullodger View Post
                  there will be nothing to inherit as I plan to drink the proceeds.
                  Good luck with that Art.

                  A 70 year old bloke with a modest portfolio, drinking a bottle of decent malt whisky every day, will hardy make a scratch on just the inflation alone.

                  Comment


                    #10
                    Originally posted by theartfullodger View Post
                    (So perhaps declared before the 1st, 2019-2020, sale?).
                    This does appear to be the case. I sold one property last summer, for which I'll be paying the CGT in January 2021. I am currently in the process of selling another property, with an anticipated completion date in May, for which I'll pay CGT in June 2020. It does feel a bit odd to be paying the CGT on these two properties in what is prima facie the wrong order.

                    Comment


                      #11
                      I usually submit my straightforward tax return in January, close to the end of month deadline.
                      Like some of you posting above, I sold a property in this tax year, which will mean paying some CGT by 31 January 2021 latest..
                      Given the more complicated tax return *, I was thinking of submitting it a bit earlier, say by November, to allow time for any queries or requests for more information to be sorted out.
                      Any thoughts on whether this is sensible, daft or whatever welcome.

                      * eg I extended the lease 3 years ago and intend to claim the premium and legal fees for that to offset against my CGT bill, as it increased the saleability and price of the property significantly

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