Capital Gain Tax on property disposals to be paid within 30 day window

CGT on property disposals to be paid earlier

From April 2020, UK residents disposing of second properties are required to report the sale and pay any resulting tax within 30 days of completion.

The rules do not apply to main residences which are covered by the Principal Private Residence Relief, sheltering the full gain from tax.

For non-UK residents, new rules also apply from April 2020. Disposals of UK residential and non-residential property must be reported within 30 days of sale completion and any resulting tax paid within the same 30 day period (tax can no longer be deferred until the self-assessment tax return date).

HMRC is rolling out a new micro service for reporting and paying tax on property disposals which we’ll update you on when we have more details. Any taxpayers already within the self-assessment system should report property disposals (not covered by PPR) on their tax return, in addition to reporting & paying within the 30 day deadline.

If the disposal is a one off, customers can remain outside the self-assessment system providing there is no other reason to be part of it, such as another source of income subject to UK tax.

We can advise you on your tax obligations, assist with any queries or issues you have and offer solutions to help you achieve a more tax optimal position.

For help and advice, please contact [email protected] or call 01527 558539. Our full service offering is available to help you achieve tax compliance and a tax optimal situation.

Further info can be found on these changes here.

property disposal

property disposal