Property Tax Autumn Budget 2018

Other Property Matters not already mentioned in this Budget summary:

Capital gains tax (CGT) payment window

A new requirement for UK residents to make a payment on account of capital gains tax following the completion of a residential property disposal. This is an extension of existing reporting and payment on account rules that apply to non-UK residents.

In short, pay any CGT within 30 days of sale.  This will apply to:

• Non-UK residents from 6 April 2019.
• UK residents from 6 April 2020.

Higher stamp duty rates reclaim for purchases of additional properties

Where you have a main residence and buy another one (before selling your main home) and end up paying higher stamp duty on your new main home (as at the time it is technically a 2nd property), you have the ability to reclaim the higher stamp duty paid back when you sell your old main home and the new main home is no fully and only your main home.  This must be within 3 years of buying your new one.

Time limit to reclaim higher/excess paid stamp duty is increased to claiming within 12 months of selling the old home (used to be 3 months).

More Stamp Duty for non-residents?

Government is consulting on an additional 1% stamp duty for non-residents buying residential property.

Annual Tax for Enveloped Dwellings (ATED)

ATED is where properties are owned inside an envelope e.g. many people have bought property inside a limited company wrapper so that when they sell the property, they actually do not sell the property but sell the company, thus avoiding stamp duty as the limited company still owns the property.  ATED is a yearly tax on this type of property ownership.  ATED increases by 2.4% (CPI) on 1 April 2019.