Capital Gains Tax Changes

The proposed change to the administration and payment of capital gains tax on the disposal of residential properties is due to come into force from 6th April 2020.

From this date, where CGT is due on a residential property disposal a return will need to be filed with HMRC, and also the CGT must be paid within 30 days of the date of completion. Where a property comprises both residential and commercial, the gain arising must be apportioned on a just and reasonable basis.

For UK resident individuals and trustees, a return will need to be filed with HMRC where a disposal of residential property gives rise to a chargeable gain or an allowable loss, unless the gain is fully covered by a relief such as the principal private residence relief, or where the gain is covered by the annual exemption, or by losses brought forward.

Whilst legal advisors should be aware of this change in filing and payment requirements, ultimately the responsibility, as always, will be on the taxpayer to ensure compliance.

National Living Wage Increase

The national living wage will increase from 1st April 2020 for employees aged 25 and over, and the national minimum wage will also increase from the same date for employees under 25 years old.

The new ( hourly ) rates are compulsory, and must be followed to avoid penalties and back payment to the employees. The new rates are :

Aged 25 +            :       The rate will increase from £8.21 to £8.72

Aged 21 to 24      :        The rate will increase from £7.70 to £8.20

Aged 18 to 20      :       The rate will increase from £6.15 to £6.45

Aged 16 & 17       :       The rate will increase from £4.35 to £4.55

Apprentices under 19 or in their first year        :        The rate will increase from £3.90 to £4.15