Rishi Sunak announced the Autumn Budget and Spending Review which covers many different areas from Personal Tax, Employment, Business Tax and Capital Taxes. We have pulled out two key areas that will be of interest to landlords and property investors.

1. Making Tax Digital

It had been expected that landlords with business income of more than £10,000 per annum would be required to enter the MTD regime for income tax purposes from 6 April 2023. However, HMRC recently announced that this will be deferred until 6 April 2024.

Following the deferral for landlords, general partnerships will not be required to comply with MTD for income tax until 6 April 2025 and the date other types of partnerships (for example limited liability partnerships) will be required to comply will be confirmed in the future.

HMRC has also confirmed that the new system of penalties for the late filing and late payment of tax for income tax self-assessment will be aligned with when a taxpayer becomes mandated into MTD for income tax.

2. Capital Gains Tax

No changes to the current rates of CGT have been announced. This means that the rate remains at 10%, to the extent that any income tax basic rate band is available, and 20% thereafter. Higher rates of 18% and 28% apply for certain gains, mainly chargeable gains on residential properties, except for any element that qualifies for Private Residence Relief.

CGT annual exemption - The CGT annual exemption will be maintained at the current level of £12,300 for 2022/23 and up to and including 2025/26.

CGT reporting and payment following a property disposal

UK resident individuals who dispose of UK residential property are sometimes required to deliver a CGT return to HMRC and make a payment on account of CGT within 30 days of completion of the property disposal. Broadly, this only applies where the property disposal gives rise to a CGT liability and as such usually excludes the disposal of a property to which private residence relief applies.

Non-UK residents are subject to similar deadlines in respect of the disposal of all types of UK land and property.

In both cases, for disposals that are complete on or after 27 October 2021, the reporting and payment deadline is extended to 60 days following the completion of the disposal.

From the same date, changes will clarify that for UK residents disposing of a mixed-use property, only the portion of the gain that is the residential property gain is required to be reported and paid.

We hope you found this summary useful.  If you are a landlord or property investor and you would like some further advice on Making Tax Digital or Capital Gains Tax, please do get in touch. You can call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.