New 30-day CGT Payment Deadline for UK Residential Property

Author

Andy Wood

Andy is a practical, creative tax adviser who assists a variety of clients in achieving their personal and commercial objectives in the most tax efficient manner.

Don’t Get Caught Out – New 30 Day CGT Payment Deadline – April 2020

There are important developments for landlords who hold property in their own names – or might potentially dispose of shares in property companies.

Their CGT liability on any gains will be accelerated such that they must pay the tax within 30 days of the date of disposal.

The change takes effect for disposals on or after 6 April 2020.

Disposals by non-resident are already subject to a similar reporting regime.

No returns are required for disposals that result in no tax liability.

POA, CGT Disposals & Self Assessment

One needs to work out the tax due on the disposal, ignoring any other CGT disposals which are outside of these rules. The tax is due on the date that the return is due – in other words, by the 30-day deadline.

NB/ The tax paid constitutes a payment on account (“POA”) of CGT for the relevant tax year. The usual tax calculation will take place through the normal self-assessment regime with a credit given for the POA paid.

If you have any queries regarding this change, or any other property tax matters, then please get in touch. Or read more about Property Tax and Capital Gains Tax below.

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