Are you disposing of a second home, an inherited or rental property? You should be aware that HMRC has introduced a major change to the deadlines for filing a return where Capital Gains Tax (CGT) is payable. In fact, there is now a new 30 day reporting rule for CGT.
After completion of the property disposal, you now have a 30 day window in which to file a return, calculate and make payment on account of the CGT bill. Reporting isn’t required where there is no payment due.
The previous procedure saw payment being made as part of the self-assessment cycle, where CGT was payable by 31 January following the year of disposal.
If you don’t act within the new 30 day reporting rule
It’s important that everyone who is involved in the sale of a residential property fully understands and complies with this new 30 day reporting rule for CGT.
If you don’t tell HMRC about any Capital Gains Tax within 30 days of completion you may be charged a penalty AND have to pay interest on what you owe.
Do you hold any UK property, directly or indirectly, that you are planning to dispose of? Have you any other concerns in relation to the Capital Gains Tax changes? Please contact a member of the Tax Team at Jones Harris.
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