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Disposals of land & property (CGT returns) - HMRC issues £1.3m in late filing penalties

HMRC issues £1.3m in late filing penalties

Since the introduction of the new 30-day window for capital gains tax (CGT) reporting and payment in April 2020, HMRC has issued over £1.3m in late filing penalties.

The new law that was introduced on 6 April 2020 means that anyone selling a second home must declare and pay any CGT that is due, via HMRC’s new ‘CGT on UK property account’, within 30 days of completion or face penalties. 

HMRC waived the £100 fine for the late filing of the CGT report until the end of June 2020 provided that the gain was reported and any tax that was due was paid by 31 July 2020.

This relaxation is no longer in force and the following penalties will now be levied if you miss the deadline by:

  • up to 6 months, you will get a penalty of £100;
  • more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater;
  • more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater. 

HMRC is not currently issuing penalties for the late payment of CGT and will not do so until after 31 January 2022.

The change to the reporting and payment window was announced over two years ago in July 2018, with the hope that this would give UK landlords and second homeowners time to know and understand the new legislation. Previously landlords and second-home owners declared any such disposal at the end of the year in their annual tax returns, with the CGT not payable until the 31 January following the end of the tax year. This meant that some disposals were disclosed, with the relevant tax paid, well over a year after the transaction took place.

Those facing the fines can appeal against these penalties with HMRC considering whether they have a ‘reasonable excuse’ for not filing on time, on a case by case basis. HMRC will also consider Covid-19 as a reasonable excuse for missing some tax obligations such as payments or filing dates.

Ward Williams can assist with the following:

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

If you require any further information, please get in touch with your usual Ward Williams contact.

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.

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