Prior to 6 April 2020, taxpayers had between 10 and 22 months from the sale or disposal of a UK residential property to pay and report Capital Gains Tax (CGT) on property disposals.

However, from 6 April 2020, new rules came into force – where CGT is payable on the sale of a UK residential property, the sale must be reported to HMRC and the tax paid on or before 30 days from the date of sale.

Example: if the date of sale is 1 September 2020, the due date for both reporting the details of the sale and payment on account of the CGT must be completed by 1 October 2020.

The new rules apply to UK resident individuals, trustees and representatives.

As the requirements do not apply when there is no tax to pay due to available reliefs or exemptions, please contact us for advice on available exemptions.

The changes predominantly affect those who are selling furnished holiday lets, buy-to-let properties or second homes.

Regardless of whether there is a CGT liability, non-UK residents must continue to report disposals of interest in UK residential or commercial property within 30 days of the date of sale.

HMRC has advised they will not issue late filing penalties up to and including 31 July 2020. Yet, any transactions completed from 1 July 2020 onwards will receive a late filing penalty if they are not reported within 30 days. If the tax remains unpaid after 30 days, interest will accrue.

This is a significant change to both reporting requirements and dates of payment, therefore due to the short timescale, it is important to seek professional advice in advance of any transaction to ensure the deadlines can be met.

Our team of Tax Advisers are available to work with you to ensure you meet the new 30-day reporting and payment deadline.

For help and advice, contact our Tax Advisers on 0161 761 5231 or