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The Accountants for Growth

Property Review Service

Property Review Service

Watch out if selling residential property

Thinking of selling a residential property?
A number of new rules could see an increase in tax burden for many, early payment of tax
for some, and extra red tape in the form of a new Tax Return purely for the property sale.
Significant red tape and costs
The first issue is where residential property is sold and a taxable gain arises, the seller will
be required to complete a Residential Property Return to HM Revenue & Customs within
30 days of the sale completing and pay over the Capital Gains Tax at the same time.

This alone brings forward significantly the payment of tax by up to 21 months depending
upon when the property is sold, compared to the old rules. This can be a serious cash flow
disadvantage for many, especially if the money paid for the property is being received by
instalments over a number of months.
The other big concern is the time pressure to gather together the appropriate information
to be able to correctly calculate the possible tax due, and the complexities of the
calculations. It is going to be very easy for individuals selling property to forget or miss
details that could then increase their tax burden.
Significant tax bills
The second big issue is where the seller has not lived in the property as their main home
throughout the period of ownership, and perhaps has rented it out, then the potential tax
liability on the sale could be much higher than anticipated.
If you are looking to sell residential property please start gathering together evidence of all
costs acquiring and improving your residential property over the years, details of the
potential proceeds and come and see us. We can calculate the potential position and advise
your accordingly.
Our new Residence Review Service
We are today launching our Essential Residence Review service. We will be able to review
your circumstances and quantify the potential tax that may arise. The essential service is
normally worth £950 + VAT for smaller properties but we are offering it free to the first 40
And so, if you are interested in finding out how the changes impact on you please contact us
now on 0121 706 8585, and book your Essential Residence Review.
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