UK and International Tax news
Reporting And Payment Of CGT On Residential Property Disposals Update
Thursday 16th April 2020
HMRC has confirmed that it will not issue late filing penalties for CGT payment on account returns received late up to and including 31 July 2020.
From 6 April 2020, sellers of UK residential property must report and pay any CGT due within 30 days of completion. The new obligation applies to UK residential property transactions where the date of disposal, usually the date of exchange, is on or after 6 April 2020 and CGT is due.
HMRC has recently launched a new online service to enable sellers of UK residential properties on or after 6 April 2020 to report and pay any CGT due within 30 days of completion.
To help those selling properties familiarise themselves with the change in the rules and the new on-line process, HMRC is allowing a period of time to adjust and will not issue late filing penalties for CGT payment on account returns received late up to and including 31 July 2020.
For UK residents, this means transactions completed between 6 April and 30 June 2020 and reported up to 31 July 2020. Transactions completed from 1 July 2020 onwards will receive a late filing penalty if they are not reported within 30 calendar days. Interest will accrue if the tax remains unpaid after 30 days.
UK residents do not need to report transactions where no tax is due because of the availability of reliefs (such as private residence relief and/or the annual exempt amount). A non-resident person must use the service to report sales or disposals from 6 April 2020 of residential UK property even if there is no tax to pay or a loss has arisen on the disposal.
If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.Contact Us