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Showing posts from February, 2020

New Capital Gains Tax Rules for Property Investors & Landlords

From April 2020, new capital gains tax rules are set to take effect, and the changes will impact most sales of additional properties in the UK. Landlords and property investors are expected to be impacted by new rules coming in next April on capital gains tax, which is paid on any profits made through the sale of a property that isn’t your main residence. The changes coming in will affect the time you have to pay your capital gains tax bill, the amount of tax relief you can claim if you previously lived in the property, and how letting relief will work.
Tighter payment deadline Because capital gains tax on property is currently paid through your self-assessment tax return, it normally doesn’t need to be paid until the following tax year – so a property sale that incurs CGT in the 2018/2019 tax year doesn’t need to be declared and paid until 31 January 2020. But from April 2020, sellers will need to pay the full amount owed within 30 days of the completion of the sale. While the cost w…

Inflation

Consumer Price Index (CPI) Consumer Price Index CPI in the United Kingdom remained unchanged at 108.50 points in December from 108.50 points in November of 2019. Consumer Price Index CPI in the United Kingdom averaged 79.32 points from 1988 until 2019, reaching an all time high of 108.50 points in September of 2019 and a record low of 48.40 points in January of 1988.
What is the Consumer Price Index (CPI) The CPI is a measure of consumer price inflation produced to international standards and in line with European regulations. First published in 1997 as the Harmonised Index of Consumer Prices (HICP), the CPI is the inflation measure used in the government’s target for inflation. The CPI is also used for purposes such as uprating pensions, wages and benefits and can aid in the understanding of inflation on family budgets.
Why is inflation important Keeping a healthy cash flow throughout your life is essential and one of the biggest risks to capital is inflation risk. It is important t…