Draft Finance Bill 2019 now published

Draft Finance Bill 2019 now published

The draft Finance Bill for 2019 has now been published and is open for technical consultation until 31 August 2018.

The government look set to go ahead with their proposed 30 day deadline for making a return and payment on account to HMRC for gains on disposals of UK residential property. The measure is confirmed to come into effect from April 2020 and will apply to individuals, trustees and personal representatives.

It is expected that the self-assessed calculation of the Capital Gains Tax (‘CGT’) payment within 30 days takes into consideration unused losses and the person’s annual exempt amount. The rate of tax for individuals is determined after making a reasonable estimate of the amount of taxable income for the year.

To reiterate the point from my previous article (which can be viewed here), the return and payment will not be necessary where the gains are not chargeable to CGT; for example, where the gains are fully covered by private residence relief.

What is new in the draft Finance Bill 2019?

In addition, the draft Finance Bill 2019 introduces legislation to bring gains accruing to non-UK residents on disposals of all UK real property, including commercial property, within the scope of UK CGT from 6 April 2019. Non-residents who sell shares in a company that derives its value from UK property will also have to pay CGT. Rebasing will be permitted so that only gains after 6 April 2019 will be exposed to the new rules.

For more information please contact Jenna Fyfe CTA, Tax Manager, on jenna.fyfe@michelmores.com or +44 (0)1392 687541.