ATFM

New rules from HMRC will mean that buy-to-let landlords and second homeowners will have to make capital gains tax payments sooner than they might have expected, says the Association of Taxation Technicians (ATT). If you are planning to sell a property that you have let or a second home, it would normally need to be reported to HMRC using a self-assessment tax return or using the online “real time” tool for reporting. This means that the tax due needs to be paid by January 31 of the following tax year, which gives sellers between 10 and 22 months after the sale of their property before they need to pay. What’s changing? HMRC has concerns about how long it could take before capital gains tax is paid, so they have decided to change the rules from April 2020. From the 2020/21 tax year, individuals and trustees disposing of a residential property will be required to make a payment on account, much like the rule for self-assessment income tax. This payment will need to be made within 30 d

Nil rate band Under current rules, any part of the estate that falls within the available nil rate band (NRB), currently £325,000 until at least 5 April 2021, is taxed at zero. Anything in excess of this amount is taxed at 40%. On death any part of the estate that passes to the surviving spouse* is an exempt transfer and will not use the NRB. Also, since the 9 October 2007 any unused NRB can be transferred to a surviving spouse. For example, if a husband dies and leaves his estate to his widow, she can take his unused NRB and add it to her own. This means that when she dies, her estate will only incur IHT if it’s worth more than £650,000 currently. [* Note: Within the article spouse also means civil partner.] The unused NRB available to transfer to a spouse is expressed as a percentage rather than a monetary amount and so increases with any future increases to the NRB. Therefore if an individual does not use any of their NRB, their spouse can claim 100%. If the NRB on the death of

I am pleased to say we have a new employee in Carrie-Anne Marshall who will be based at our new Fakenham Office and joins us as a Financial Administrator. Carrie joins us from the recently relocated CITB (Construction Industry Training Board) and has worked in hospitality and customer services over the last 13 years, gaining NVQs and Diplomas in these areas. For further information on Carrie, and our other staff, please visit our website at www.allentomasfinancial.co.uk

Allen Tomas & Co started in 2013, however we incorporated December 2014 so on the 29th November 2019 we celebrated 5 years of incorporation at the Dersingham Village Centre. This venue has recently undergone a fantastic state of the art build and renovation and only recently received a visit from Her Majesty the Queen. Special thanks to all our speakers which included David Collingham, Chairman of the Dersingham Village Centre, Bob Woods MBE, Founder and Senior Adviser of Mattioli Woods Plc and Colonel Rich Cantrill OBE MC, of the Royal Marines and the Ministry of Defence. Their support and empathy was overwhelming and their speeches were very well received by the audience. We would also like to thank the fabulous Florentina Catering for the food and Kayleigh from The Artisan Branding Co for the photography.