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Autumn Budget 2021: CGT payment extension on property disposals

Mark Stemp, Partner, Private Clients
27/10/2021
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From April 2020, UK resident individuals selling UK residential property were required to pay Capital Gains Tax (CGT) and report the gain to HMRC within 30 days from the completion of the property disposal.  For non-UK resident individuals, the regime applied for disposals after April 2015. From today (27 October 2021) the tax payment date and reporting deadline has been extended to 60 days.

This is a welcome and pragmatic change. In our experience, we found that many taxpayers who were new to the rules having not sold and paid CGT on a residential property before, were finding the 30-day deadline too tight to calculate the tax and report to HMRC.

Some residential transactions can require valuations and often it can take time to gather and review historical records in order to prepare the calculations. This would often result in missing a filing deadline and as a consequence become subject to interest and penalties.

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Property tax update for residential property and second home owners.
New rulings provide clarification on Multiple Dwellings Relief (MDR).
We outline some of the things you may need to consider if you want to gift property to your children.

Autumn Budget 2021

What do the announcements mean for you and your organisation?

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Mark Stemp
Mark Stemp
Partner, Private Clients
London & Thames Valley