Buy to Let Properties / Second Homes

Further to the interest restriction to be phased in from April 2017, the Chancellor announced further measures today to hit this sector:

• Capital gains tax due on residential properties is currently paid in the January following the end of the tax year via the self- assessment tax return. New measures announced today will see the tax payment date aligned with the stamp duty date of 30 days following completion for residential properties from April 2019.
• Higher rates of stamp duty will be introduced from April 2016 for properties in excess of £40,000. An additional 3% above the current rates will be applied for property to let properties and second homes.

Avoidance and Evasion

The Government continues to focus on tax avoidance schemes including increasing resources to this section to implement further measures. In April 2016 the following are some of the measures we expect to see coming through:

• A new penalty is being introduced of 60% of tax due to be charged in all cases successfully tackled by the GAAR.
• A new criminal offence will be enforced for tax evasion which removes the need to prove intent for the most serious cases of failing to disclose offshore income and gains.
• New civil penalty for offshore tax evaders which is aimed at deliberate offshore tax evasion by the introduction of a penalty linked to the value of the asset.
• A new criminal offence for corporates failing to prevent tax evasion from their agents.

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