Penalised over CGT due to Government emergency rules?
My wife and I were selling a Furnished Holiday Let with a completion date of 3rd April 2020, in order to take advantage of our 2 x CGT allowance of £12,000 (tax year 2019 – 2020) and not have to pay the CGT until 31st January 2021.
However, due to the Government imposed ruling, we were not allowed to complete on that date and have now completed on 29th May 2020, but of course the rules have now changed and as a result, the CGT is due 30 days after completion.
This is very unfair and costly to us, through no fault of our own.
My questions is:
Have HMRC made any allowances / concessions for these situations, i.e. can we roll forward last year’s CGT Allowance and defer payment of the CGT due until 31st January 2021?
Many thanks
Max
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Tenants fallen out and neither will leave?
Member Since February 2020 - Comments: 20
2:13 PM, 4th June 2020, About 6 years ago
My understanding of the legislation was that those who had already exchanged could complete, but those yet to exchange were requested to delay. I bought a flat with completion on 1st April (it was delayed a day or so as the company releasing funds was doing everything from home by email).
Member Since February 2020 - Comments: 20
2:16 PM, 4th June 2020, About 6 years ago
My understanding of the legislation was that those who had already exchanged could complete, but those yet to exchange were requested to delay. I bought a flat with completion on 1st April (it was delayed a day or so as the company releasing funds was doing everything from home by email).
Worth asking HMRC to accept exchange date (not completion date) as the correct date of the sale and that would put you straight. Otherwise you have lost a year’s worth of CGT allowances even though in reality you can sell on 6th April, not 3rd.
Member Since September 2014 - Comments: 166
3:22 PM, 4th June 2020, About 6 years ago
My son is in conveyancing at a solicitors. After the govt announcement most buyers rang to discuss their sale. He was working from home and doing completions until 20 April when furloughed because work had dried up.
There was no legislation banning exchanges or completions, although there were reasons why it wouldn’t have been sensible to proceed (e.g. a vulnerable or ill buyer) and why they could be more difficult (e.g. working from home). Knowing the OP’s reason or circumstances may well be relevant.