The deadline has been increased from thirty days to sixty days for making Capital Gains Tax (CGT) returns and associated payments when selling UK land and property.
This will allow taxpayers more time to create and provide accurate figures and will give them more time to engage with advisors.
What is Capital Gains Tax?
Capital Gains Tax is a tax on the profit you make when you sell an asset that has increased in value. Anyone that disposes of an interest in UK residential property has to deliver a return to HMRC and make a payment within, what will now be, sixty days of completion of the disposal or sale.
This tax change will affect individuals, trustees and personal representatives of deceased persons who sell or dispose of interests in UK land.
A CGT could also occur when a property is transferred by way of gift or a transfer at undervalue – apart from spousal transfers which do not usually need to be reported.
Non UK residents will be impacted if they dispose of any form of UK land.
Why Has The Deadline Been Extended?
The payment window has been extended from thirty to sixty days to allow individuals to prepare the necessary documents and information needed. The previous thirty day window was shown to be too short for individuals to deal with all the necessary compliance work required – resulting in one third of returns being filed late.
How to Report Capital Gains Tax
To report a CGT, you will need to create a government Gateway account and Capital Gains Tax account. You will then need to file the report – which we can do for you.
If you file late or pay the tax late, you may incur a penalty. Interest is also charged on late payments.
How We Can Help
We advise that you get specialised help when filing your Capital Gains Tax, to ensure that it is completed correctly. What’s more, tax implications are not always straightforward, but we can ensure that all allowances and reliefs are applied. Contact our expert team today to see how we can help.