Capital Gains Tax Shakeup for COVID Recovery

Tim Sedgewick

H&H Land & Estates consider the Chancellor’s announcement to review CGT to recover national Corona Crisis expenditure.

Announced on Tuesday, the Chancellor Rishi Sunak has initiated a review of Capital Gains Tax (CGT) in order to fill the financial black hole left by the cost of responding to the global pandemic. Beyond the very human cost of the Corona crisis experienced in the UK, there has also been a real financial cost accumulated over the last 4 months with numerous economic interventions to protect the economy. Here H&H Land & Estates examine the plan to offset this public expenditure, with the Office for Tax Simplification (OTS) set to examine the levy charged on gains arising from assets, including property.

The government defines Capital Gains Tax as “a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.” It is this gain made that is subject to tax, not the amount of money received on a sale. Rules relating to these chargeable assets look to be targeted by the Chancellor to raise enough public funds to sustain a Covid-19 recovery.

Tim Sedgewick, Associate Director & Chartered Surveyor of H&H Land & Estates, comments on the questions surrounding the possible shakeup:

“This could usher in a major shift in the UK’s tax collection regime. So far Capital Gains has been insulated from any radical policy changes, but Corona looks likely to alter this. Without any clear details from the Chancellor, we can only speculate at this point. But there are a number of potential areas where the exchequer could raise funds. For example, will we see the end to Business Asset Rollover Relief? This has commonly been used by farmers selling farms and land for development, as they can roll over ‘the gain’ into a new business property such as a farm, and delay paying the tax.”

Before any exact decisions are made, the OTS has called for evidence or views relating to the complexities of Capital Gains Tax and how it could be improved. This consultation will bring to the fore any concerns and help affected businesses voice their position. This online survey will be open until the 20th October 2020 on the gov.uk website.

Tim continues: “There have always been exemptions to Capital Gains, including tax relief on the sale of a principal private residence. While we don’t know at this point if this will be scrapped, it is one element that could be subject to change. What this means for sellers and investors is potentially a new approach to capturing wealth on asset sales, to help pay back the vast spend on the Coronavirus response. For a long time, farms have benefited from benign tax arrangements, so it remains to be seen what impact any alterations to the tax regime will have.

“Another CGT target could be an ending to annual exemptions or a change to their value. Currently individuals can make wealth gains of £12,500 tax free, and we had been seeing trends of steady increases over the last decade. Maybe the pandemic will bring a sharp stop to that or a reduction in these exemptions.”

Ultimately it is clear that the depleted public finances will have to be recovered from somewhere. With the pause in Stamp Duty on house sales benefiting the property sector, this CGT shakeup could be the sharper end of a two-pronged response to get the economy’s balance sheet back on track.

“If anyone is considering a sale, it is only right that the correct team can advise you and guide you through these unchartered waters. From the outset it is important to receive guidance from those most up to date with tax policy and potential future changes. Here at H&H we’ve got our ear to the ground and will be working hard to tailor our advice as we gain more information.”

Back to News

What Our Customers Say

  • We would just like to compliment you on your fantastic team in the Grange office. Last December with Jill's expertise we found just the right tenant for a small cottage we own. Jill was so professional and nice to deal with which is almost unquantifiable and we feel praise should be given where praise is due. We are about to successfully complete the sale of our second cottage with the help of Michaela in particular who directed our purchasers to us in the first couple of days it was advertised and has also been extraordinarily helpful and professional. We have nothing but praise for the team and your company and H & H will always be highly recommended by us.

    Rita and Colin Denby

    8th November 2020

  • Helen Forbes of the Durham office has been really solid during the sale of our home!

    Alison

    23rd October 2020

  • Sales | I’m writing to say how grateful we are for all your help in the purchase of our new house in Keswick. We really enjoyed working with you and intend to put our current home on the market shortly with H&H, which will be entirely because of our dealings with you. We found your communication invaluable and felt informed at every stage of the house buying process. You demonstrated both integrity and honesty in all your dealings with us, and as a result we felt very confident in putting our trust in you. You gave a very positive, professional and friendly demonstration of how the job of an estate agent should be done. Thanks once again.

    K & P Mullarkey

    8th September 2020

  • Lettings | Excellent service right from day one, with an amazing team who really will go above and beyond (working hours for certain) to help ensure that their customers (prospective or otherwise) get the very best in advice and support. A genuinely good and reliable business.

    John Barnes

    16th September 2020

  • Sales | Sally and the team at H&H Cockermouth made what seemed a very stressful first time purchase during COVID-19 much easier. She was on hand to answer all of our questions, however small or obvious in a clear and supportive way. Elements beyond anyone’s control meant that the process was not smooth for us but Sally was reassuring and very patient with us. Thank you Sally and the H&H Team :)

    Ryan Tingley

    28th August 2020

  • Andrew and team at H&H were amazing. I sold my house through H&H we were about to close and then corona hit. It was unprecedented. The other thing that was unprecedented was the support and guidance that Andrew and his team offered us. He was always available and actively invested in helping us to complete our sale. Andrew and his team were professional yet friendly. We had been with another local estate agent for a month previously and the difference was huge. Most importantly we felt like people and not just a client. Thank you Andrew and your team. When I come to sell again you are top of my list.

    Paul Whittam

    26th August 2020

  • Sales | I am writing following the successful completion of the sale of my father’s house in Cartmel. I want to take this opportunity to express my thanks to Michaela and all the Grange team for their exceptional help during a very difficult time. From our first meeting I had complete confidence in the team. Following my father’s death plus lockdown, selling a house remotely could have been a nightmare; but difficult though it was I always knew that the team were there and went well beyond what is usually expected. I felt lucky to have them; I hope, but am sure that you fully appreciate the quality of service being provided despite difficult circumstances. I would always recommend H&H Land & Estates.

    Kate Gee

    20th August 2020

  • Lettings | We have used H&H Land & Estates since 2005 to manage our rental property. Everyone we have dealt with has made us feel confident in their knowledge and ability, offering expert guidance where needed. Recently we had to deal with some challenging issues and Jenna Nixon was nothing short of superb. Always returning calls promptly, offering expert advice which was very reassuring. We would never rent out a property without the help of a managing agent and they don’t come better than H&H Land & Estates. I fully recommend them. When we sell the property, we will engage their sales department for these same reasons. Expert, friendly staff with a wealth of knowledge on the local area and markets.

    Judith Rowe

    20th August 2020

  • Sales | Having had my property on the market with yourselves, shortly due to complete, I would just like to compliment the staff who work in Lowther Street. From my first dealings with the valuer who appraised my property to telephone calls with the staff in the office, I have received nothing but excellent service and I would like to thank them all for that. My biggest thanks must go to Gillian, who has helped me from start to finish, going beyond expectations to help me. I cannot thank her enough for all she has done for me and felt I must let you know what a valuable member of staff you have; her enthusiasm and humour along with her professional service has made my experience of selling my property very pleasant and for that I am very grateful. Many Thanks

    Jean Hill

    19th August 2020

  • Farm Sale | We would like to show our appreciation for everything Shirley did in the preparation and presentation of the (now successful) sale of the farm and we are sending you a small gift by way of our personal thanks. Thank you and best wishes to you The Hill Family

    The Hill Family (1)

    18th August 2020

  • Development | Although we thought this day would come sometimes miracles do actually happen! Anyway to say I am relieved and pleased is an understatement - a situation which ruled our lives for so long can now officially be put to bed. Can I take this opportunity of sincerely thanking Richard - his support is much appreciated. Also, can I please thank David for his stalwart endeavours over such a long period of time as his patience was truly amazing. Once again my sincere thanks.

    Lynn Buddles

    18th August 2020

  • Sales | Thank you for being helpful with my sale of Little Burnholme and a BIG thank you for being you. Kindest Regards Margaret

    Margaret

    17th August 2020

  • Lettings | We recently rented a property through H&H Land & Estates. Jenna was amazing and very professional throughout. From the first viewing through to after we had moved in, Jenna and the team were on hand every step of the way. First class service.

    Clare Everglades

    17th August 2020

  • Land Management | H&H Land & Estates manage our land holding portfolio nationwide. We trust them with their judgement and appreciate their advice at all times.

    Bellway Homes Ltd

    16th August 2020

  • I have been with H&H for over twenty years and latterly working with Tracey Jackson. I am very satisfied with their work.

    Mr Sheffield

    6th July 2020

  • Thomas, Shirley & Alan, we would like to show you our appreciation for everything you did in the preparation and sale of the (now successful) sale of the farm. Thank you.

    The Hill Family

    1st November 2019

  • Friendly and professional service at all times. Great service. Tracey is fabulous.

    Saiorse Cosgrove

    10th September 2019

  • Over the past few months, I’ve been dealing with Jenna to sort out some issues with a tenant that left and to find a new tenant for my property. You’ve been the managing agent for my flat since 2005 and the service that Jenna has given me recently has been nothing short of superb. She has promptly answered questions, given me reassurance and generally been a godsend over a fairly stressful time. You have a tremendous asset in Jenna.

    J Rowe

    25th February 2020

  • Excellent service from valuation through to completion. Very friendly staff and extremely professional. Thank you very much Andrew and Kathy in the Penrith office for your help. Can’t praise them enough.

    J Carver

    13th September 2019

  • Personal, professional and friendly, the team at H&H in Penrith truly give you five star treatment. They help you through all the issues which always arise when buying a property and give you peace of mind that everything is being dealt with. We would definitely recommend this great team and would use again in the future.

    Carol Edmondson

    15th September 2019

  • From my first dealings with the valuer who came out to look at my property and telephone dealings with the staff in the office, I have had nothing but excellent service and I would like to thank them all for that. My biggest thanks must go to Gillian, who has helped me all the way from start to finish, she has gone beyond my expectations and helped me in every way possible, her enthusiasm and humour along with her professional service has made my experience of selling my property a very pleasant experience and for that I am very grateful.

    J Hill

    21st August 2019

  • Nothing but praise for the service offered by Andrew and Kathy at H&H King, Penrith. They really put themselves out, not only to ensure that we sold our house but also to find us a house that suited our requirements in the right area. We have no doubts that they are worthy of a 5* rating. N&T

    Neil McGeown

    1st October 2019

  • We found Andrew and Kathy to be extremely professional. They guided us through the whole process seamlessly. Cannot recommend H&H highly enough. Thank you.

    Rhona King

    28th February 2019

  • Land Agency Advice | I just wanted to put ‘pen to paper‘ to give you some feedback about Robert Jauneika (Durham office) who was recommended to me by Martyn Hunter of JW Woods. I contacted Robert for advice and to do some work for me relating to a parcel of land I was selling ( now sold subject to buyer getting planning permission). I would like to say that Robert has been extremely professional, prompt, efficient, knowledgeable, a great communicator, patient and pleasant throughout all our communications. In fact I have worked with many people both in my professional and private life and have yet to come across anyone as good as Robert.

    Carolyn Hough

    16th November 2020

  • Thank you so much [Mike] for all your help with the Mid-Tier Application. I couldn't have possibly done it myself and it was such a relief to be able to hand it over to you.

    L. McArthur

    22nd August 2018

  • We are very pleased with the way you dealt with the Scroggs Wood programme. There seemed to be a number of difficulties, but you overcame all these problems and got the timber extracted in good time, and sold it well - we were delighted with the cheques we received. So we wish to thank you warmly for all your efforts, your expertise and your thoroughly professional approach.

    H. Summerson

    31st January 2020

  • I just wanted to put ‘pen to paper‘ to give you some feedback about Robert Jauneika (Durham office) who was recommended to me by Martyn Hunter of JW Woods. I contacted Robert for advice and to do some work for me relating to a parcel of land I was selling ( now sold subject to buyer getting planning permission). I would like to say that Robert has been extremely professional, prompt, efficient, knowledgeable, a great communicator, patient and pleasant throughout all our communications. In fact I have worked with many people both in my professional and private life and have yet to come across anyone as good as Robert.

    Carolyn Hough

    16th November 2020