Rishi Sunak ‘needs to balance the books’ following ‘comprehensive’ tax review – get ready | Personal Finance | Finance


“The reason for this is that real-time reporting has significant advantages from HMRC’s perspective, in terms of tackling the tax gap and bringing forward tax receipts, and it can save time for taxpayers if they and their advisors take advantage of online reporting.

“The problems often come with large and relatively-complex transactions such as selling a property, when there is a lot of paperwork and legal hoops to jump through. Particularly at a time like this when the property market is very buoyant, conveyancers are in high demand, and delays can be very common.

“Having all the necessary paperwork ready within 30 days, and the cash available to pay the tax bill at the same time, is just too ambitious for many taxpayers. It is little wonder then that a third of the initial returns for residential property disposals exceeded the 30-day CGT deadline, and many individuals who own more than one property will welcome the OTS’s suggestion to extend it to 60 days.

“The report also recommends increasing the window for separating couples to transfer assets between each other on a no gain/no loss basis to the end of the tax year at least two years after separation. This proposal will be welcomed by those who are familiar with the challenges involved in separation and divorce. Divorce is often a highly sensitive process and adding the pressure of a ticking clock counting down the days until the parties may be liable for a CGT charge on shared possessions only makes matters worse. This does not promote the welfare of families going through a divorce and its right the OTS is seeking to ease this burden.”

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