The Chancellor announced in his Autumn Budget that from 27 October 2021 the deadline for UK residents to report and pay Capital Gains Tax (CGT) after selling UK residential property will increase from 30 days after the completion date to 60 days.
This change follows a recommendation made by The Office of Tax Simplification (OTS) earlier this year. Details of the OTS recommendation can be found here
Rules introduced in April 2020 had meant that a UK resident disposing of UK residential property making a gain which is liable to CGT had just 30 days from the date of completion to inform HMRC and pay any tax owed. The OTS said that this was a challenging deadline and had found that a third of CGT returns were being filed late. This change will help to ensure that taxpayers have sufficient time to report and pay the CGT.
For non-UK residents disposing of property in the UK, this deadline will also increase from 30 days to 60 days.
When mixed-use property is disposed of by UK residents, legislation will also clarify that the 60 day payment window will only apply to the residential element of the property gain.
HMRC have confirmed that the 60 day limit will only apply to disposals made on or after 27 October 2021. Disposals before that date still need to meet the 30-day requirement.
How we can help?
Hawsons have the knowledge and expertise to accurately calculate your capital gains tax liability and file the return correctly within the required timeframe. We can also identify any tax planning opportunities and apply any reliefs which may be available to mitigate the liability.
More from our tax experts
You can find all of our latest tax articles and tax resources here.
If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.
Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.
Free initial meeting
Tax Director, Sheffield
Introduction By 2025 more than 50% of 20-39 year-olds are expecting to be living in a privately rented rental property across the UK as the rise of ‘Generation Rent’ continues. Furthermore, as the rental market continues to grow, so does the competition with new...
Introduction We have summarised the key rates and allowances which are fundamental to our business and personal lives. We are sure that you will find them a useful point of reference and have set out below a few examples of how they can be used. Personal tax rates As...
Spring Statement 2022 Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his first Spring Statement on Wednesday 23 March 2022. In his Spring Statement, the Chancellor announced a cut in fuel duty for petrol and diesel as he sought to ease the...