The CIOT has reminded UK-resident individuals disposing of residential property after 6 April 2020 that payment on account of any CGT due will be payable within 30 days of completion. Originally announced in 2015, Autumn Budget 2017 deferred the start date by one year and a technical consultation was held between April and June 2018.
From 6 April 2020 UK residents who sell a residential property that gives rise to a CGT liability must send a new standalone online return to HMRC and pay the tax due within 30 days of completion of the sale. Under current rules, taxpayers do not have to complete a tax return and pay the CGT until the self-assessment deadline of 31 January after the tax year in which the disposal is made.
HMRC have confirmed that the new regime applies only to taxable gains accruing on or after 6 April 2020. This means that if contracts are exchanged under an unconditional contract in the tax year 2019/20, but completion takes place on or after 6 April 2020, the 30-day filing requirement does not apply. The gain should be reported in the 2019/20 self-assessment return in the usual way.
If exchange of contracts takes place on or after 6 April 2020, or the contract is conditional and the condition is not satisfied until after 6 April 2020, a return will be required within 30 days of completion of the transaction together with a payment on account.
The CIOT has reminded UK-resident individuals disposing of residential property after 6 April 2020 that payment on account of any CGT due will be payable within 30 days of completion. Originally announced in 2015, Autumn Budget 2017 deferred the start date by one year and a technical consultation was held between April and June 2018.
From 6 April 2020 UK residents who sell a residential property that gives rise to a CGT liability must send a new standalone online return to HMRC and pay the tax due within 30 days of completion of the sale. Under current rules, taxpayers do not have to complete a tax return and pay the CGT until the self-assessment deadline of 31 January after the tax year in which the disposal is made.
HMRC have confirmed that the new regime applies only to taxable gains accruing on or after 6 April 2020. This means that if contracts are exchanged under an unconditional contract in the tax year 2019/20, but completion takes place on or after 6 April 2020, the 30-day filing requirement does not apply. The gain should be reported in the 2019/20 self-assessment return in the usual way.
If exchange of contracts takes place on or after 6 April 2020, or the contract is conditional and the condition is not satisfied until after 6 April 2020, a return will be required within 30 days of completion of the transaction together with a payment on account.
