August 2022 Newsletter | Cylchlythyr Misol Awst 2022
1. As reported in previous newsletters, the deadline to register trusts with HMRC is 1 September 2022. All taxable and non-taxable trusts (subject to a list of exclusions) will need to be registered. If you are a trustee or are unsure of the registration requirements, please get in touch.
2. As interest rates continue to rise, the cost of mortgages is also on the increase. Typically, a 2-year mortgage fix is now in the region of 3% compared to 1.5% a year ago.
For savers, the interest rate rise is good news and interest rates of 1.5% - 2.5% are now readily available. This may well involve transferring to savings accounts with other banks, as the large high street banks are stubbornly refusing to increase interest rates.
3. From 2025, landlords will be unable to let or renew tenancies which are not in the energy efficient categories A-C. This will especially apply to landlords who let older properties.
Many landlords are selling their properties, leading to capital gains tax becoming payable from the property sale. Remember that any capital gains from the sale of UK residential property must be reported and paid to HMRC within 60 days of the sale.
4. Continue to remain scam aware. The latest sick scams include someone claiming to be an Ukrainian widow who needs access to her late husband’s funds. Remain sceptical of any unexpected emails, calls or texts and if you are unsure, do not respond.
Ask Huw & Aled: I have some capital gains tax to pay after the sale of an investment property. Are there any reliefs I can claim to reduce the capital gains tax liability?
a) You can offset the costs of buying and selling the property including stamp duty, estate agent and solicitors fees.
b) If you have made any major improvements to the property which have not been claimed against rental income these can be included, costs such as new extensions / bathrooms / kitchens but not general maintenance.
c) You can offset losses on other assets against the gains. If you have lost money on investments / collapsed cryptocurrencies, consider selling these assets to realise the losses to offset the gains if there is little hope of an increase in value of the investments.
