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CGT and Autumn Budget
JPin
Posts: 188 Forumite
Hi All,
I have a rental property that has given problems for years. When the COVID tenants left having not paid in years I opted to repair the house and sell it. 8 weeks ago the sale was agreed and it now nears completion, however, my solicitor called me to advise that in terms of CGT and the autumn budget I could be negatively impacted and should think about terminating the sale. If the sale doesn't compete by next Thursday would changes in the budget impact me?
I have a rental property that has given problems for years. When the COVID tenants left having not paid in years I opted to repair the house and sell it. 8 weeks ago the sale was agreed and it now nears completion, however, my solicitor called me to advise that in terms of CGT and the autumn budget I could be negatively impacted and should think about terminating the sale. If the sale doesn't compete by next Thursday would changes in the budget impact me?
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Comments
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Just like your solicitor I have absolutely no idea what is proposed in the autumn budget. Yes - you could be affected but, honestly, who knows? For what it’s worth I have never come across any major tax changes being applied retrospectively. I would proceed but that is just my opinion.2
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[Deleted User] said:Just like your solicitor I have absolutely no idea what is proposed in the autumn budget. Yes - you could be affected but, honestly, who knows? For what it’s worth I have never come across any major tax changes being applied retrospectively. I would proceed but that is just my opinion.0
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JPin said:[Deleted User] said:Just like your solicitor I have absolutely no idea what is proposed in the autumn budget. Yes - you could be affected but, honestly, who knows? For what it’s worth I have never come across any major tax changes being applied retrospectively. I would proceed but that is just my opinion.
I would imagine IF there are changes your sale should be complete before then. Not great advice from your solicitor, they should be focused on getting everything finalised.0 -
JPin said:[Deleted User] said:Just like your solicitor I have absolutely no idea what is proposed in the autumn budget. Yes - you could be affected but, honestly, who knows? For what it’s worth I have never come across any major tax changes being applied retrospectively. I would proceed but that is just my opinion.0
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JPin said:my solicitor called me to advise that in terms of CGT and the autumn budget I could be negatively impacted and should think about terminating the sale.0
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[Deleted User] said:JPin said:[Deleted User] said:Just like your solicitor I have absolutely no idea what is proposed in the autumn budget. Yes - you could be affected but, honestly, who knows? For what it’s worth I have never come across any major tax changes being applied retrospectively. I would proceed but that is just my opinion.0
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Completion is normally only relevant for capital gains tax, in respect to house sales, for the due date to complete the online return and pay the tax (within 60 days of completion). The date that is relevant for when the capital gain takes place is when unconditional contracts are exchanged, which may well have already happened?
If you already have an unconditional exchange of contracts, it is extremely unlikely that any change announced on 17 November will impact the tax liability. Even if you don't, changing the capital gains tax rate part way through the year has not happened before, but we live in strange times. Capital gains tax is a relatively low yielding tax, and in times of inflation can be an unfair one (hence the need for indexation allowances in past times of higher inflation).1 -
Jeremy535897 said:Completion is normally only relevant for capital gains tax, in respect to house sales, for the due date to complete the online return and pay the tax (within 60 days of completion). The date that is relevant for when the capital gain takes place is when unconditional contracts are exchanged, which may well have already happened?
If you already have an unconditional exchange of contracts, it is extremely unlikely that any change announced on 17 November will impact the tax liability. Even if you don't, changing the capital gains tax rate part way through the year has not happened before, but we live in strange times. Capital gains tax is a relatively low yielding tax, and in times of inflation can be an unfair one (hence the need for indexation allowances in past times of higher inflation).1 -
I suspect it is the solicitor pointing out the option to terminate, in case he is sued for not pointing it out. It would be very surprising if he was actually recommending that the sale be cancelled. Suggesting that a client "thinks about" terminating the sale does not amount to recommending it.0
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Jeremy535897 said:I suspect it is the solicitor pointing out the option to terminate, in case he is sued for not pointing it out. It would be very surprising if he was actually recommending that the sale be cancelled. Suggesting that a client "thinks about" terminating the sale does not amount to recommending it.
Perhaps a case of being over cautious?0
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