CGT and Autumn Budget

JPin

[Deleted User] said:

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).

Yes - as you say, when the sale becomes unconditional. If, as is likely, this has already happened the ‘advice’ offered by the solicitor is very strange. 

Not quite unconditional, however, we're almost there. 

sheramber

So you haven't exchanged yet?

Jeremy535897

It is right to say that it would be best to get to unconditional exchange, and preferably even completion, by 16 November, because whilst the probability of rates going up mid year is low, the probability of rates going down is zero. That is not the same as saying don't sell. The tax tail should not wag the dog, and if rates do go up again, they won't go down any time soon, so you would be postponing a disposal indefinitely if you decided not to sell at this time because of a risk of rates possibly rising.

JPin

sheramber said:

So you haven't exchanged yet?

No, at what stage does this happen? 

Cptralls

I think that the advice you have received so far has been good. It looks like you're in a good position, even if the sale is not completed by 17th November you are unlikely to be impacted by any CGT changes. My advice would be to get the sale closed. 

Jeremy535897

JPin said:

sheramber said:

So you haven't exchanged yet?

No, at what stage does this happen? 

When the purchaser is obliged to complete the transaction. Contracts are signed by both parties. Quite often nowadays exchange and completion happen simultaneously.

JPin

Jeremy535897 said:

JPin said:

sheramber said:

So you haven't exchanged yet?

No, at what stage does this happen? 

When the purchaser is obliged to complete the transaction. Contracts are signed by both parties. Quite often nowadays exchange and completion happen simultaneously.

I think I'm about 3 or at most 4 weeks away from that. 

Cptralls

If you're closing the sale this month then there will be no issues.