Despite rumours of an impending overhaul of the Capital Gains Tax (CGT) regime, and speculation that the CGT rates may be aligned with income tax rates, the Government has refrained from doing so – for now.
There was, though, one very good piece of news about Capital Gains Tax in the Autumn Budget; from 27 October 2021, those who sell residential property in the UK (whether UK resident or non-resident) will now have a total 60 days to submit the CGT Report and pay any CGT, doubling the previous deadline of 30 days, following pressure by industry bodies.
One of the concerns is that there has been a lack of awareness of the reporting requirement after it was brought in for residential disposals on or after 6 April 2020, leading to taxpayers missing the deadline; indeed, HMRC raised over £1.3 million in late filing penalties for the last 6 months of 2020 alone, following a soft landing in the first 3 months of the new report process (to 30 June 2020), in which they did not issue penalties due to Covid-19.
The news of the extended deadline will be welcomed by property owners who may only become aware of the reporting requirement once the sale or gift of their property completes, and who are faced with a £100 fine if the report is not submitted on time, as well as further fines after 6 months.
For more information on the CGT Return process, please see my earlier blog here.
Contact us for assistance with your residential property CGT requirements.