New rules which came in to force from 6 April 2020, accelerate the payment deadline for Capital Gains Tax on UK residential property disposals to 30 days of the sale. This is a tight timescale and very different from the payment deadlines under the ‘old’ rules. However, on 9 April, HMRC confirmed it will not charge late filing penalties for reports of Capital Gains Tax on disposals of UK residential property by UK residents made by 31 July 2020.
HMRC is allowing a period of time to adjust and give taxpayers time to familiarise themselves with the change in the rules and a new on-line process.
HMRC, have however confirmed that late payment interest will accrue on Capital Gains Tax unpaid after 30 days.
You may be interested to read my recent blog which outlines the changes and modifications to tax relief, impacting those who hold property as an investment.
If you would like further guidance on this matter or assistance with the calculation of your Capital Gains Tax liability or reporting, please contact our Head of Tax, Laura Brown or call 0131 341 3632.
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