Capital Gains Tax on disposals of residential property in the UK - 60 days extended time limit for payments and reporting on residential property disposals
Posted on 11th April 2021 at 22:17
A new requirement for UK residents to report and pay Capital Gains Tax on disposals of UK residential property within 30 days was introduced in April 2020 where non-residents have had an obligation to report disposals since 2015.
The Office of Tax Simplification made recommendations back in May 2021 to the government to extend the 30-day deadline to 60 days. This measure was announced at Autumn Budget 2021 for disposals that complete on or after 27 October 2021.
For UK residents, disposing of a residential property after 6 April 2020, the Capital Gains Tax will need to be reported and paid to HMRC within 30 days of completion for disposals up to 26 October 2021. For disposals on or after 27 October 2021, the time limit is extended to 60 days,
Non-residents must report all sales of disposals of UK property within 30 days of the completion date, even if they have no tax to pay.
Transactions completed from 1 July 2020 onwards will receive a late filing penalty if they are not reported within 30 calendar days and 60 days for disposals on or after 27 October 2021. Interest will accrue if the tax remains unpaid after the deadline.
HMRC has published a detailed guidance here. The new reporting regime will require that the tax payer creates a Government Gateway account in order to generate a Capital Gains Tax account number required for the new online reporting.
Self assessment tax returns will still require the reporting of the gains. However, where a taxpayer is not otherwise required to file a tax return will not have to do so if all gains have been reported through the new service.
We’re here to help
If you require any assistance with the completion of the new Capital Gains Tax Return or you require to determine your reporting obligations, please call us on 0333 772 7753 or email our team at [email protected]
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