Capital Gains tax receipts up by 18% on last year

Latest figures from HMRC have revealed an 18% increase in capital gains tax receipts in 2018/19 compared to the previous year.

Experts at NFU Mutual have said the double-digit hike could be attributable to the clampdown on private buy-to-let investors.

Commenting, Sean McCann, chartered financial planner at financial advice firm NFU Mutual, said: “CGT is a growing source of revenue for the government. Last year’s record haul of £9.2bn already looks like it could be surpassed.

“The increase is partly due to some private landlords choosing to offload buy-to-let investments. Essentially, landlords are being squeezed from two sides by the taxman. From one side, the higher rate tax relief on mortgage interest is gradually being phased out, which makes it a much less profitable exercise.  From the other, those looking to sell buy-to-let properties are being squeezed with an extra eight per cent Capital Gains Tax.

"HMRC clearly sees the opportunity to increase the CGT coffers by targeting landlords and is introducing new rules to collect the revenue earlier. Currently, CGT is due by 31st January following the end of the tax year in which the sale has occurred. However, there are plans to change the rules from April 2020 to require tax to be paid within 30 days of the sale.’’  

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