If you think about accounting firms, you will probably imagine a company that deals with standard...
Chancellor Rishi Sunak laid out changes to capital gains tax (CGT) as part of his 2021 Budget, delivered on October 27. Here is everything you need to know...
Annual exemption and rates of tax
The annual exempt amount for individuals and personal representatives remains £12,300 for 2022–23 and the annual exempt amount for most trustees also remains unchanged at £6,150. There have been no changes to rates of capital gains tax.
Dormant assets scheme
Where an asset, such as a bank account, has not been used for many years and the provider cannot trace the owner, the Dormant Assets Scheme allows the provider to transfer funds to the scheme which then manages the funds, retaining sufficient funds to meet any reclaims and distributing the rest to social and environmental initiatives. An expansion of the scheme was announced in 2021, one consequence of which will be that certain assets have to be monetised before being transferred into the scheme. The measure announced in the Budget will ensure that the CGT charge does not arise when the asset is liquidated (which occurs before the owner has been identified) but instead accrues when the proceeds are reclaimed and received by the individual to whom the asset belongs.
This measure will take effect when the Dormant Assets Bill becomes law.
Time limit for payment on property disposals
Where an individual, trustees or personal representatives dispose of UK land and completion of the disposal takes place on or after 27 October 2021, the time limit for delivery of a CGT return and payment of tax is increased to 60 days (previously 30 days) following completion of the disposal. (The reporting requirement applies to UK residents who dispose of UK residential property and to non-residents who make direct or indirect disposals of UK land).
The necessary legislation will be introduced in Finance Bill 2021–22 and will also clarify that, for UK residents where the gain relates to mixed-use property, only the residential property portion of the gains has to be returned and paid.
Budget 2021 - Overview of Changes
• Administration and Compliance Changes
• Capital Gains Tax (CGT) Changes
• Corporation Tax and Other Business Tax Changes
• Customs and Excise Duties Changes
• Employment Tax Changes
• Personal Tax Changes
• Property Tax Changes
If you have any questions about the issues raised in this article, we at Key Business Consultants can help. Get in touch with us today or call us directly on 020 3728 2848.
