I have aclient who is about to sell a let residentail property after 5th. april 2020. I see the normal rule that contract date is the point of sale has now changed just for this type of transaction to completion. date. What is anybody's opinion on a scenario where the contact date is prior to 6th. April 2020 but the completion date is after the 5th. April 2020. I would think the contact date is still the applicable one as it is prior to the new rules coming in.
Secondly if this sale takes place close to 6th April 2020 it may not be possible to calculate my client's tax laibility accurately before the 30 days runs out. It looks then as if I have to apply a best estimate and then adjust after this when I know the other income. Are there any penalties or interest payable then, even if I can prove that the estimate was reasonable.
As usual this is a tax grabbing scheme dreamed up by civil servants who have no idea how much time it can take the self-employed to complete records for the year for perfectly justified reasons such as establishing bad debts. etc.