The 30-day deadline for the reporting of chargeable gains on UK residential property disposals and payment of the Capital Gains Tax (CGT), has been a challenge for taxpayers and their advisers since its introduction.
Even for the most straightforward sales, issues with the HMRC registration system have hampered the process and caused delays. For more complex transactions there have been added hurdles such as the need to obtain a valuation, locating extensive historic capital enhancement information, or establishing details of owner-occupation and permitted absences to calculate main residence exemption. In some instances, all of these factors may be thrown into the mix.
For those who were unable to accurately quantify their gain and disclose it in time, the only option was to file and settle late (with the risk of consequent interest and penalties) or submit a timely return and payment, based on best estimates, knowing that any overpayment made could be tricky and slow to reclaim. Fortunately, the government has listened to recommendations made by the Office for Tax Simplification, and doubled the timeframe so that taxpayers whose disposals complete after today will have 60 days to report and pay their property CGT. A welcome relaxation to a tight deadline!
Please watch my recent video on CGT where I explain the advice and assistance I can provide regarding government changes to the UK property tax legislation.
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