Capital Taxes – Spring Budget 2020

Budget 2020 Capital Tax

The main capital tax announcements in the Spring Budget 2020 are as follows:

Capital Gains Tax Rates

The rates of capital gains tax remain unchanged. 10% tax rate is charged for basic rate taxpayers and 20% tax is charged thereafter.

Gains from the sale of residential properties remain at the higher rates of 18% (basic rate taxpayer) and 28% (higher rate taxpayer).

Capital Gains Tax Annual Exemption

The annual exemption from capital gains tax is to increase from £12,000 to £12,300 for tax year 2020/21.

Capital Gains on Residential Properties

Disposals of residential properties made after 6th April 2020, must now be reported within 30 days. A payment on account towards the capital gains tax liability must also be paid within 30 days of the completion date.

The new requirements do not include disposals where no capital gains tax is due. For example when the sale is the main home, as this is covered by principal private residence relief (PPR relief).

Entrepreneurs Relief

As expected entrepreneurs relief is to be dramatically reduced with immediate effect.

The lifetime limit is reduced from £10 million to £1 million.

Other budget announcements:

Personal Taxes
Employments Taxes
Business Taxes

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