On 6 April, changes were made to the deadlines for paying Capital Gains Tax after selling a residential property and the reporting obligations for residential property gains chargeable on UK resident individuals, trustees and personal representatives.
Under the new legislation, payment on account of the associated Capital Gains Tax (CGT) liability must also be made.
As regards disposals, from 6 April onwards, the following applies:
- a standalone tax return is required if there is a disposal of UK land on which a residential property gain accrues
- CGT must be computed on the reported gain in the tax return
- the return must be filed and the CGT paid within 30 days of the completion date of the property disposal.
A failure to submit a return within the 30-day period may result in a penalty being issued plus interest being charged on what is owed
If a chargeable gain doesn’t arise, for example where the gains are covered by Private Residence Relief, then the new requirements do not apply.
