Estate agents can provide property owners with up-to-date information about the latest tax trends. Here are 4 key tax trends property owners should know:
1. New property portal
The new property portal that has been introduced under the Renters Reform Bill may be used by HMRC to check for any tax entry mistakes. This will allow HMRC to analyse the data from the new property portal as well as the information from the Land Registry.
2. Changes to the capital gains tax threshold
There have been changes to the capital gains tax threshold since April 2023. The threshold has decreased to £6,000 when it was previously £12,300. As a result, property owners who earn anything over £6,000 will have to pay capital gains tax. Not only this, but also property owners are required to register the sale of properties for capital gains tax with HMRC within 60 days or they will have to pay a fine.
3. Self-assessment tax returns must be submitted as early as possible
Property owners are required to submit their self-assessment tax returns for the 2022-2023 tax year since 6 April 2023.
4. Rent deposit data is helping HMRC with enforcement
Rent deposit data is being used by HMRC to work out how much tax needs to be declared on tax returns. This will help HMRC identify whether property owners are not declaring their rents.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
T +44 (0)203 488 1488