Buy-to-let landlords in the UK are being warned that they could face significant financial penalties if they fail to file a capital gains tax return.
This warning comes as interest rates in the UK have risen to their highest level in 13 years, prompting an upturn in the numbers of landlords choosing to sell their properties.
If you are a buy-to-let landlord and sell a property, you may be liable to pay capital gains tax on any increase in value (borrowing irrespective).
You must file a capital gains tax return and pay the tax due within 60 days of selling a property. If you fail to do so, you could be fined up to £300 or 5% of the unpaid capital gains tax, whichever is greater. Seemingly, some people remain unaware of the accelerated reporting and tax payment requirement, despite the rules having been in place for 3 years now.
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