This is a follow up to our blog posted last month highlighting the changes from 6 April 2020, where UK resident individuals or trustees disposing of UK residential property will only have a time window of 30 days to calculate, report and pay any capital gain tax due. It was reported that taxpayers would be required to notify HMRC of such disposals through the government gateway account and penalties for late returns and late payments would be similar to those in connection with the annual self-assessment return.
The fact is that with the current COVID-19 pandemic lockdown, very few transactions are likely to happen, certainly in the first quarter of in this new tax year. Representations were made that the introduction of these new rules should be delayed.
However the government have now released the new service for taxpayers to report their own gain Report and pay Capital Gains Tax and the new service for agents to report on behalf of their clients Manage your client’s Capital Gains Tax. The services are still in public beta and we understand that some of the functionality is not fully developed.
Some good news however emerged subsequently, with HMRC’s announcement on 9th April 2020 that it will not charge late filing penalties for reports of CGT on disposals of UK residential property by UK residents made by 31 July 2020, so transactions completed between 6 April and 30 June 2020 will be treated more leniently.
If you require any further advice regarding this or indeed capital taxes planning generally, then I am happy to help