CGT 30-day reporting - 'soft landing' period ends soon
- 9th July 2020
Previously in this blog, we outlined the new system for paying and declaring CGT within 30 days of the completion of a UK property transaction. In spite of the coronavirus crisis, this new reporting procedure and deadline came into effect for property completions on and after 6 April 2020.
There are exceptions from the 30-day regime for transactions where there is a loss, the gain is fully covered by a CGT relief or annual exemption, and where the contracts were exchanged in 2019/20. Otherwise if the CGT is not reported and paid within 30 days of completion, late filing penalties will be imposed in the same manner as for late SA tax returns.
Fortunately, HMRC has introduced a soft landing for the new CGT regime, such that disposals made from 6 April to 30 June 2020 inclusive can be reported by 31 July 2020 with no penalties due. However, transactions completed on or after 1 July 2020 must be reported within 30 days through the taxpayer's "CGT on UK property account".
Your accountant can operate this account on your behalf, but you need to set it up through your own Government gateway. You also need to separately authorise your accountant to report transactions through the property account.
If you cannot report online, your accountant may be able to persuade HMRC to issue a paper form. If there is more than one property transaction in the tax year, you may have to use that paper route to report the second and subsequent disposals.
This information is taken from the weekly Tax Tips, published by the Tax Advice Network, for which you can subscribe at www.TaxAdviceNetwork.co.uk
Any news or resources within this section should not be relied upon with regards to figures or data referred to as legislative and policy changes may have occurred.