- May 11, 2020
- Posted by: Josiah Hincks Solicitors
- Category: Legal News
Capital Gains Tax: New Reporting Requirements
Sandra Danaher | Associate Solicitor
The reporting regulations for Capital Gains Tax have been amended.
If you have sold your property after 6th April 2020 then this must now be reported and any Capital Gains Tax paid within 30 days of selling the property. If you do not do so then interest and a penalty will have to be paid.
If you sold your property before the 6th April 2020 then gains can be reported using the “real time” Capital Gains Tax Service or in your next self assessment tax return.
HMRC have however confirmed that they will allow a three month grace period for the 30 day CGT reporting rule. This means that late filing penalties will not be issued for the disposal of UK residential property completed on or after 6th April 2020 and before 1st July 2020 and reported by and including 31st July 2020. Interest will however be charged on any transactions after 6th April 2020 where CGT remains unpaid after 30 days. Transactions completed from the 1st July 2020 onwards will receive a late filing penalty if they are not reported within 30 calendar days.
HMRC are targeting second property owners who own:
- • A property that is not their main home.
- • A holiday home.
- • A buy to let property.
- • A property that has been inherited and has not been used by the beneficiary as a main home.
Normally if you sell a home that you live in then this is not subject to Capital Gains Tax.
If you need any assistance in relation to tax then please contact a member of our Probate Team.