Be prepared! HR and capital gains tax changes due in April

It’s a new year and businesses need to plan ahead for major changes taking place in HR and Capital Gains Tax (CGT).

It is of the utmost importance that clients, businesses and individuals consider these, take expert advice and then act well in time before they come into force on April 6th.

In HR these relate to contracts of employment touching upon agency staff and seasonal workers as well as holiday pay calculations, while changes to CGT could affect anyone selling a residential property that’s not their main home.

HR – contracts of employment

In the ‘Good Work Plan’ published in December 2018 the government promised to abolish a legal loophole known as the Swedish Derogation regarding the use of agency workers.

This allowed agencies to opt out of equalising the pay of agency staff with the permanent workforce when they had been with the same employer for more than 12 weeks, provided that they paid the agency workers between assignments.

This opt-out ceases on April 6 2020 when the Agency Workers (Amendment) Regulations 2019 come into force.

The government is also lengthening the reference period for determining an average week’s pay from 12 weeks to 52 weeks from the same date. This aims to improve holiday pay for seasonal workers who tend to lose out under current rules.  See the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018.

A third change will mean that workers as well as employees will be entitled to receive a statement of ‘written particulars’ on basic terms and conditions from day one of employment. Currently employers have up to two months to issue the statement to any employee working for them for more than one month.   See Part 3 of Employment Rights (Miscellaneous Amendments) Regulations 2019.

For further information about how these changes could affect you please contact Wendy McGarvey on:  0330 088 7111.


Capital Gains Tax

From 6 April 2020, HMRC is proposing three significant changes which will potentially increase the capital gains tax paid on the disposal of any residential property by an individual.

These changes seek to raise extra revenue from the disposal of residential properties and to collect these taxes more quickly.

For many of the 1.2 million residential property disposals each year, there will be no liability having been occupied throughout the period of ownership as the owner’s main residence.

If, however, you have a property which was once your main residence and you either let it out or have retained it for other reasons, these changes will affect you.

This free downloadable guide to Capital gains tax planning is designed to outline the main changes and implications, however proper planning will help to mitigate (but not eliminate) the potential additional tax cost.

For further information and advice on these changes may affect you, please contact your local office by calling 0330 088 7111.