The annual budget was announced on 16 March 2016, with one of the Government’s headline claims being that Capital Gains Tax had been slashed by 8%. This is a tax on the profit when you sell assets that have increased in value.
will apply from April 2016. However, what did not quite make the headlines was
an important exemption to these reforms. Capital Gains Tax that applies to
residential property, and some other assets, will include an 8% surcharge.
Who Will Be Affected?
Therefore, in reality, the Capital Gains Tax on residential property profit remains entirely unchanged. Whilst this may not affect some, anyone looking to realise an interest in a residential property that they are not living in, needs to consider Capital Gains Tax implications.
inclusion of this 8% surcharge will particularly affect landlords and
buy-to-let investors, as they will receive the same tax on residential property
profits as prior to these reforms.
What To Consider
Gains Tax impacts only the profit made. Still, it is an important consideration
when acquiring any asset, whether you’re buying it yourself or, as is often the
case, when you inherit it.
Wilson, our solicitors in Essex can advise you with regard to these changes to
Capital Gains Tax. We have specialist property law and private
client teams that can assist you on potential liability or planning.
closely in conjunction with accountants to provide expert guidance. If you have
any concerns about existing or future assets, get in touch on 01702 477106 for
a free, 30-minute consultation. You can also find us on Facebook, Google+,
Twitter, LinkedIn and Instagram.