Care home residents could be caught in CGT trap
Those who hang on to their old houses, classified as a secondary residence, are in line to pay tax if they sell a property which has increased in value after three years
Those who hang on to their old houses, classified as a secondary residence, are in line to pay tax if they sell a property which has increased in value after three years
Elderly people living in care homes may be caught in the capital gains tax
trap, advisers have warned.
The coalition government is gearing up to raise CGT from 18% to possibly 40%
for non-business assets such as second homes.
Those being looked after but still hanging on to their old houses would have
to pay capital gains tax, because the care home is classified as their primary
residence.
If they sell their house, treated as their secondary residence after three
years, they will be liable for CGT if the property has gone up in value.
Stephen Herring, senior tax partner at accountancy firm BDO, told the
Daily
Telegraph: “There is no special relief for people who move into care homes.”
Further reading:
Coalition
will see CGT hike on the cards
CGT
reform comes under Redwood attack
Chris
Evans escapes CGT on car sale
The numbers you crunch tell a story. Your expertis...
14yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleHMRC sees the profit or loss made on buying and selling of exchange tokens as within the charge to Capital Gains Tax (CGT). Read More...
View articleThe recent IR35 case involving former Liverpool footballer and Sky Sports presenter, Phil Thompson, has drawn attention to the complexities and implic...
View articleFrom January 1, 2024, HMRC will implement new tax rules affecting individuals who sell items on platforms like Etsy, Depop, and Vinted. The new regula...
View articleHMRC reveal a small majority of people are soldiering a significant proportion of income and capital gains tax, following FOI request. Data has reigni...
View articleSteven Pinhey, technical officer at the Association of Taxation Technicians (ATT), considers how the rules on deductible expenses work in a social med...
View articleATT technical officer, David Wright, considers the implications of HMRC’s decision to remove employees with income between £100,000 and £150,000 from ...
View articleThis was the fourth largest borrowing year since records began in 1993 Read More...
View articleATT technical officer, David Wright, provides an overview of the welcome relaxation to CGT provisions for separating couples looking to transfer asset...
View article