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Capital Gains Tax (CGT) - Changes to the deadlines for filing and paying CGT on the disposal of UK property

The deadlines for filing and paying CGT arising on the sale of an interest in UK property has changed as from 6 April 2020.

UK residents making a gain which is liable to CGT from the disposal of residential property situated in the UK now have 30 days from conveyance in which to notify HMRC and pay across any CGT that is due.

Non-UK residents have been subject to these reporting requirements since April 2015, regardless of whether there is a capital gain or not. As from 6 April 2020, however, it is no longer possible for non-residents to defer payment via the self-assessment tax return, as any tax owed must be paid within the 30 day reporting and payment period, as with the new regime for UK residents.

The 30 day reporting period applies to the disposal of UK residential property, but also direct and indirect disposals of non-residential property by non-UK residents.

A new online service is available for reporting the disposal of interests in UK property and pay the CGT that is due.

Non-compliance will result in a late filing penalty being imposed, whilst interest will accrue if the tax remains unpaid after 30 days.

Ward Williams can assist with the following:

  • Determine whether a land and property transaction needs to be notified to HMRC within 30 days.
  • Calculate the capital gains tax that is due.
  • Report the property sale to HMRC via the new online service

For further information please contact Simon Boxall on property@wardwilliams.co.uk. Or visit or property services section.

About the author

Simon is the Tax Director at Ward Williams and has more than 20 years of practical experience working in the tax profession.

 

Specialising in personal tax, Simon qualified as a Tax Technician in 2007, having been awarded with the Ivison medal for attaining the highest mark in the Personal Taxation paper in 2006.

 

As department head, Simon oversees the tax team across the Ward Williams group, whilst managing a diverse portfolio of clients including high net worth individuals, doctors, directors of owner managed businesses, partnerships and sole traders.

simon.boxall@wardwilliams.co.uk

01895 236335