We have written about this before, but we wanted to remind you about the changes to Capital Gains Tax if you are planning to sell a second property after April 2020. This is particularly important for all landlords and property investors who regularly buy and sell properties. 

The change will have a significant impact on your cash flow, so you need to be ready and have a financial plan in advance.

The change relates to the timescales for paying Capital Gains Tax after the sale of the property. Currently, any capital gains tax is recorded on your personal tax return, and tax is payable on 31 January following the end of the tax year (the 5 April).

However, from 6 April 2020 if you sell a second property you have only 30 days after the completion of the sale to inform the HMRC and also to pay the Capital Gains Tax owed. This is a very short timescale to make the payment. Therefore, you need to ensure that you have the funds available as soon as the sale is completed.

This rule applies when you sell or dispose of the property in the following situations:

• a property that you’ve not used as your main home
• a holiday home that you own
• a property which you let out for people to live in
• a property that you’ve inherited and have not used as your main home

To read the full guidance click here – Capital Gains Tax

To deal with the changes, we advise that you plan carefully when you are going to dispose of the property and ensure you have the funds available to pay the Capital Gains Tax. This is particularly important if you are selling more than one property.

If you need any advice on financial planning with regard to your property portfolio, please do contact us.

You can call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..