Capital Gains Tax (CGT) return on UK residential property disposal – deadline extension

As announced in the Autumn Budget 2021, UK residents (individuals, trustees and personal representatives) disposing of UK residential property resulting in a CGT liability will have 60 days from completion to deliver a CGT return and make a payment on account, extending the deadline from 30 days. This will apply to UK residential property disposals […]

As announced in the Autumn Budget 2021, UK residents (individuals, trustees and personal representatives) disposing of UK residential property resulting in a CGT liability will have 60 days from completion to deliver a CGT return and make a payment on account, extending the deadline from 30 days. This will apply to UK residential property disposals completed on or after 27 October 2021. Disposals before that date still need to meet the 30-day requirement.

In the case of mixed-use property disposed of by a UK resident, the 60-day reporting and payment window only applies to the residential element of the gain.

The deadline is also increased to 60 days for non-UK residents who are required to deliver a return in respect of a disposal of a direct or indirect interest in any type of UK land and make a payment on account if it gives rise to a CGT liability.

Most disposals will not be subject to the 60-day reporting and payment deadline. In particular, the deadline does not apply where a gain is covered by private residence relief or the CGT annual exemption or when the property is sold at a loss or if the property is situated outside the UK.

If the CGT return filing and payment deadline is missed, HMRC may impose penalties as well as charging interest for late payment of tax.

If you have any queries or would like to discuss this further, please do not hesitate to contact your Kilsby Williams team member on 01633 810081 or info@kilsbywilliams.com.

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