CGT 30-day payment loophole
An overlooked exception to the rule means that not everyone needs to report and pay capital gains tax (CGT) on UK residential property within 30 days. What is the story?
Anyone disposing of UK residential property that hasa CGT liability must report and pay the tax within 30 days of completion since the changes effective from April 2020. However, for transactions taking place towards the end of the tax year there is an opportunity to delay payment.
The date of exchange is relevant for the tax return reporting, but the 30-day countdown starts when the property transfer completes. This means that where contracts are exchanged during 2020/21, but completion does not take place until 7 March 2021 or later, the 30-day deadline falls after 5 April 2021. It is therefore possible to submit their 2020/21 tax return and, providing this is done before the 30-day deadline, there is no need to report the gain separately or pay the tax within 30 days.
The tax payment deadline will then be deferred until 31 January 2022, and it will save the time, cost, and hassle of reporting it within HMRC’s Capital Gains Tax on UK property account. It also allows the individual to adjust their July payments on account.
Related Topics
-
CT61
-
Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?
-
The tax‑free perks league table
You know that there are certain items or services your company can pay for without incurring a tax charge, but you’re hazy on the details. What are the most valuable tax-free perks for owner managers and which ones are you missing out on?