CGT Payment deadline increased
27 October 2021, General
Surprise treat in the 2021 Autumn Budget – Capital Gains Tax deadline increased.
Rishi Sunak delivered his Budget Speech 2021 on 27th October 2021. The accompanying small print confirmed that the CGT payment deadline increased from 30 days to 60 days for UK residential property. Selling a house can be a slow process and getting all the legal work completed takes time. The extra 30 days will help with a process that can be a nightmare..
What is Capital Gains Tax?
Capital Gains Tax (CGT) is charged on the difference between the purchase price and sale price of certain assets including houses. As part of the reforms to the tax system under the banner of Making Tax Digital, CGT had to be reported and paid to HMRC within 30 days of the sale of UK residential property.
CGT Payment deadline increased
From 27 October 2021 the deadline for UK residents to report and pay CGT after selling UK residential property will increase from 30 days after the completion date to 60 days. For non-UK residents disposing of property in the UK, this deadline will also increase from 30 days to 60 days. The effect of the change will ensure that taxpayers have sufficient time to report and pay CGT as recommended by the Office of Tax Simplification.
Can’t I just wait to complete my tax return in January?
Capital Gains tax on UK residential property must be reported and paid within 60 days of completion.
Do not wait until the next tax year to report gains on UK residential property sold since 6 April 2020. You may have to pay interest and a penalty if you do. If you do not usually send a tax return, register for Self Assessment after the tax year you disposed of your chargeable assets.
Will my solicitor file my CGT return for me?
Until recently there were still reports that solicitors were not aware of the CGT payment deadline of 30 days. Don’t assume that your CGT will be filed for you. In most cases your solicitor won’t have details of the purchase price and allowable costs to reduce the CGT.
What should I do if I think I need to report Capital Gains Tax?
Until recently there were still reports that solicitors were not aware of the 30 day CGT payment deadline. Don’t assume that this is filed for you. In most cases your solicitor won’t have details of the purchase price and allowable costs to reduce the CGT. Contact Alterledger on the form below to let us take care of everything.
