UNSETTLED property investors across Scotland are facing an unexpected capital gains pitfall because of a little-known stealth tax change.Tax experts at one of Scotland’s leading accountancy firms have warned that many face trouble as they rethink their holdings, while unaware that the timeframe to pay any Capital Gains Tax (CGT) has been changed.Scottish accountancy firm Douglas Home & Co believes that thousands of homeowners and their solicitors are already heading for a tax shock without even realising it, after selling second homes during the past 12 months.Now Sheryl Macaulay, a tax planning specialist and director of the company, is urging legal firms to forge alliances with accounting specialists to help defuse the ticking tax timebomb.She added: “People who are looking to sell, or have already sold, part of their property portfolio may find that they are due to pay their CGT bill far quicker than originally anticipated. The 30-day payment rule came into play in April 2020 but it has barely been registered outside of the accountancy world, some lawyers are simply unaware of it.“Certainly, most of their clients won’t know a thing about this. Indeed, we suspect that many people who have sold second properties in the past year are blissfully unaware of the mounting penalties coming their way if they did not pay their CGT bill within 30 days.”The changes were introduced with little fanfare and recent research showed that by January 2021 around 50,000 UK property tax returns were filed – with more than a THIRD failing to comply with the 30-day time limit. Those who miss the deadline face penalty payments up to £300 or 5% of any tax due, which …
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