Residential Property CGT Update
Though the budget didn’t include the anticipated changes to CGT as suggested in the Office of Tax Simplification’s May 2021 report, one recommendation was announced. The deadline for reporting CGT on residential property sales will be extended from 30 days to 60 days. This new rule will be applied to all property sales on or after the 27th October 2021 for both UK residents and non-residents.
The 30 day payment was introduced by HMRC in April 2020. Before that, gains were reported as part of an annual self-assessment tax return after the property was sold.
HMRC hopes that the new 60 day deadline will give taxpayers more “sufficient time” to report and pay any liable CGT without incurring penalties fines.